Isabella García
Bitcoin treasury firm Strategy (formerly MicroStrategy) has further expanded its Bitcoin portfolio, acquiring 6,911 BTC for approximately $584.1 million between March 17 and March 23, according to an 8-K filing with the SEC. The purchase, made at an average price of $84,529 per BTC, brings Strategy’s total Bitcoin holdings to 506,137 BTC, now worth over $44 billion.
Co-founder and executive chairman Michael Saylor confirmed that the company has acquired Bitcoin at an average cost of $66,608 per BTC, totaling approximately $33.7 billion, including fees and related expenses. With this milestone, Strategy now controls approximately 2.4% of Bitcoin’s fixed 21 million supply.
Equity Offerings Fuel Strategy’s Bitcoin Expansion
The latest Bitcoin acquisition was made possible by Strategy’s recent capital-raising efforts. The firm upsized its 10% Series A Perpetual Strife Preferred Stock (STRF) offering from $500 million to $722.5 million last Friday.
This move follows the company’s broader fundraising initiative, which includes a plan to raise up to $21 billion through its perpetual strike preferred stock (STRK). As part of this program, Strategy sold 13,100 STRK shares for approximately $1.1 million last week. As of March 23, around $20.99 billion worth of STRK shares remain available for issuance and sale.
Additionally, these fundraising efforts are part of Strategy’s “21/21 Plan,” which aims to secure a total of $42 billion in capital through a combination of equity offerings and fixed-income securities for Bitcoin acquisitions. Last week, the company sold 1,975,000 MSTR shares, raising approximately $592.6 million. As of March 23, the firm still has $3.57 billion worth of MSTR shares available for issuance under this program.
Market Impact and Investor Sentiment
Prior to this latest purchase, Strategy had added 130 BTC between March 10 and March 16 for $10.7 million, a relatively small acquisition compared to its typical billion-dollar investments. This brought its total holdings to 499,226 BTC, just before crossing the 500,000 BTC milestone.
Despite its aggressive Bitcoin buying strategy, Strategy’s $79.2 billion market capitalization trades at a significant premium to its Bitcoin net asset value (NAV). Some investors remain cautious about the firm’s valuation premium and ongoing capital-raising efforts for Bitcoin purchases.
On the stock market, Strategy’s Class A common stock (MSTR) closed at $304 on Friday, rising 0.6%. In pre-market trading on Monday, the stock climbed 4.9%. Over the past year, MSTR has gained over 90%, although its year-to-date performance stands at just 1.3%, according to PRIME’s Strategy Price page.
Jeff Park, Head of Alpha Strategies at Bitwise, likened Strategy’s stock to “the altcoin of traditional finance,” highlighting its high volatility and speculative nature compared to other publicly traded assets.
