Strategy, the Bitcoin investment firm formerly known as MicroStrategy, has made headlines by acquiring 3,459 BTC between April 7 and April 13, with an average purchase price of $82,618. This transaction, which cost roughly $258.8 million, was disclosed in a recent filing with the U.S. Securities and Exchange Commission. With this latest acquisition, Strategy’s total Bitcoin holdings now amount to an impressive 531,644, representing over 2.5% of the entire Bitcoin supply.
How Did Strategy Fund This Purchase?
The acquisition was funded through approximately $285.7 million raised from the sale of 959,712 shares of MSTR last week. The company still retains the ability to sell MSTR shares valued at about $2.08 billion, although it has opted not to sell any STRK shares recently, keeping its total issuance capacity at $20.97 billion.
Is Strategy Facing Financial Challenges?
Strategy’s recent purchases are part of a broader capital increase initiative dubbed “21/21,” which aims to fund Bitcoin acquisitions through a total of $42 billion in shares and bonds. Michael Saylor, the co-founder and chairman, recently expressed optimism about further purchases, stating, “There are no tariff barriers for orange dots.”
Earlier in March, the company made a significant acquisition of 22,048 BTC for approximately $1.9 billion. However, purchasing activities were paused in early April. Overall, in the first quarter, Strategy spent $7.66 billion on Bitcoin, but reported an unrealized loss of about $5.91 billion due to a 12% drop in Bitcoin prices, marking the worst quarterly performance since 2018.
Despite these challenges, the firm boasts a market valuation of $79.9 billion, which exceeds the net value of its Bitcoin holdings. This situation has sparked debate among market analysts. According to research from Bernstein, Strategy’s debt remains manageable at below 13%, with repayments not set to begin until 2028, hinting that the firm could potentially grow its BTC stash to 1 million by 2033.
Last week, the MSTR stock rose by 10.2%, reaching $299.98, with a total weekly return of 15.3%. This performance stands out positively, especially in light of recent tariff decisions by the Trump administration. While the stock started the year sluggishly, it rallied to reach breakeven for 2025, reflecting a remarkable 568% increase throughout 2024.
- Strategy has effectively increased its Bitcoin holdings to 531,644 BTC.
- The recent acquisition cost the firm around $258.8 million.
- Despite substantial investments, the company faces unrealized losses of $5.91 billion.
- Strategy has plans to significantly scale its Bitcoin holdings in the coming years.
The ongoing strategic acquisitions reflect Strategy’s commitment to Bitcoin, despite the turbulent market conditions. As the company continues to navigate financial hurdles, its ambitious plans could reshape its standing in the cryptocurrency landscape.
