Strategy’s Latest Acquisition Brings Total Bitcoin Holdings Close to 600,000
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The company Strategy, previously named MicroStrategy and founded by Bitcoin advocate Michael Saylor, has disclosed a substantial acquisition of Bitcoin, the leading cryptocurrency.
Strategy Expands Bitcoin Holdings
In its latest submission to the U.S. Securities and Exchange Commission, the firm announced the purchase of an additional 4,020 BTC for $427.1 million, averaging $106,237 per coin.
This purchase follows Bitcoin achieving a new peak of nearly $112,000 last week, propelled by renewed investments in Bitcoin exchange-traded funds along with favorable regulatory changes during President Trump’s administration.
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Saylor announced the latest acquisition via social media, highlighting that this addition brings Strategy’s total Bitcoin ownership to around 580,250 BTC, with a total investment of $40.6 billion, averaging $69,979 per token.
With its ongoing strategy of accumulating Bitcoin, the company is also looking to secure more capital to grow its portfolio.
Profits of $7.7 Billion from Bitcoin Holdings
As previously noted, Strategy introduced a $2.1 billion At-The-Market equity initiative for its preferred stock, Strife (STRF), a vital move toward cementing its Bitcoin-based financial framework.
During an investor briefing, CEO Phong Lee, alongside Saylor, underscored the notable year-to-date success of the firm’s Bitcoin-linked securities, Strike (STRK) and Strife, as significant contributors to this growth.
Lee pointed out, “We’re currently achieving a 16.3% BTC yield for the year, with a target of 25%,” reflecting the firm’s ambitious objectives. So far, Strategy has recorded a gain of $7.7 billion from its Bitcoin investments, setting a goal of reaching $15 billion.
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Previously, the company raised $212 million through Strike’s ATM initiative without facing notable pricing issues. With significant trading activity and strong demand from investors, Lee expressed confidence that the $2.1 billion Strife ATM program could be successfully executed.
Distinct from other offerings, Strike caters to “Bitcoin-curious” investors, featuring an 8% return and potential growth through Bitcoin conversion. Saylor referred to it as a “Bitcoin fellowship with a stipend,” appealing to a varied risk appetite.
Currently, Strategy manages three ATM programs: $21 billion each for MicroStrategy (MSTR) equity and Strike, and $2.1 billion for Strife. These initiatives are adjusted daily, enabling the company to fine-tune its issuance based on market dynamics, volatility, and investor interest.
At the time of this writing, BTC is aiming to solidify above the crucial $109,370 level, which could form a new support base and facilitate further record-breaking levels in the upcoming weeks. So far this year, the cryptocurrency has risen by 56%.
Featured image from DALL-E, chart from TradingView.com
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