Originally known as MicroStrategy, Strategy has made another significant Bitcoin purchase, obtaining 20,356 BTC for about $1.99 billion at an average price of $97,514 per coin. Acquired at an average cost of $66,357 each coin, this most recent purchase raises the company’s overall Bitcoin holdings to 499,096 BTC, therefore totaling an investment of $33.1 billion.
The purchase aligns with Strategy’s recent $2 billion convertible note issue, a fundraising plan the business has regularly applied to boost its Bitcoin holdings. The notes, which have a 0% yield and mature in March 2030, let investors turn them into Strategy’s Class A common stock at a 35% premium over the going market price.
Leveraging a mix of equity and debt instruments, Strategy seeks to raise $42 billion over the next three years to purchase more Bitcoin, part of its aggressive “21/21 Plan.” The corporation has already raised $20 billion toward this goal, proving its relentless conviction about the long-term worth of Bitcoin.
Strategy keeps building Bitcoin even if the fourth quarter of 2024 shows a $670 million net loss, keeping a positive view of the digital asset. The company holds an unrealized profit of more than $14.8 billion on its overall Bitcoin reserves, with prices of Bitcoin varying around $95,000.
Strategy still generates great institutional interest; BlackRock recently raised its ownership in the business to 5%. Further supporting Strategy’s Bitcoin-centric approach are reports showing several state pension funds and treasuries in North America have combined to invest $330 million in Strategy’s stock.
The strategy’s investing approach keeps changing corporate Bitcoin acceptance as it gets closer to the symbolic 500,000 BTC mark. With its aggressive accumulation policies, the company sets a new standard for conventional companies joining the digital asset market by being the biggest corporate Bitcoin holder by a considerable margin.
