Strategy to buy an additional 22k BTC worth 1.9 billion USD, increasing total holdings to 528,185 BTC.

The Bitcoin treasury company – Strategy has purchased an additional 22,048 BTC with a total value of approximately 1.92 billion USD ( at an average of 86,969 USD/BTC ) during the period from March 24 to March 30, according to an 8-K filing submitted to the U.S. Securities and Exchange Commission ( SEC ) on Monday.

Currently, Strategy holds a total of 528,185 BTC – valued at over $43 billion – purchased at an average price of $67,458 per Bitcoin, with a total cost of approximately $35.63 billion, including related expenses, according to co-founder Michael Saylor. This figure is equivalent to more than 2.5% of Bitcoin’s total fixed supply of 21 million BTC.

The latest purchase was made using funds obtained from the sale of Class A common stock (MSTR) and perpetual preferred stock STRK. Last week, Strategy sold 3,645,528 shares of MSTR with a total value of approximately $1.2 billion. As of March 30, the company reported that there is still $2.37 billion worth of MSTR stock available to be issued and sold under this program. Strategy also sold 213,807 shares of STRK with a total value of approximately $18.52 million last week, with about $20.97 billion worth of STRK stock still available for issuance and sale under the program.

The perpetual preferred stocks STRK and STRF of Strategy are outside the company’s initial “21/21” plan, which aims to raise a total of $42 billion through stock and fixed income securities issuances to purchase Bitcoin.

The amount of Bitcoin held by Strategy | Source: Company Filings## Following Strategy’s approach

Previously, Strategy purchased an additional 6,911 BTC for a total value of approximately $584.1 million in cash, at an average price of $84,529 per Bitcoin during the period from March 17 to March 23 – bringing the company’s total Bitcoin holdings above 500,000 BTC.

On Tuesday, video game retailer GameStop, the focal point of the WallStreetBets meme stock frenzy in 2021, became the latest public company to adopt a Bitcoin acquisition strategy in the style of Michael Saylor, joining a list of companies that have added or plan to add BTC to their balance sheets. GameStop then announced plans to offer $1.3 billion of senior convertible bonds to kick off its Bitcoin purchase plan.

The amount of Bitcoin held by companies | Source: CoinGeckoThe market capitalization of 75.4 billion USD of Strategy is trading significantly higher than the net asset value (NAV) of the amount of Bitcoin that the company owns, causing some investors to be concerned about the high valuation compared to NAV and the increasing frequency of the company’s Bitcoin purchase programs.

However, analysts at the research and brokerage firm Bernstein argue that with debt below 13% and no payments due before 2028, the company’s financial leverage is still under control. Last week, these analysts predicted that the amount of Bitcoin held by Strategy could more than double to over 1 million BTC as the cryptocurrency rises to $1 million according to their forecast by the end of 2033.

The Class A common stock of Strategy (MSTR) fell 10.8% on Friday, closing at $289.41 due to hotter-than-expected inflation data and the latest tariff announcement from former President Trump once again shaking the market ahead of “Liberation Day” this weekend. Currently, MSTR is down 3.5% in pre-market trading on Monday, according to data from TradingView.

After a strong increase of over 568% for MSTR in 2024, this stock has gradually lost its appeal as an alternative investment channel for bitcoin and is currently down 3.6% year-to-date.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

• Bitcoin betting by Strategy faces new risks as MSTR stock risks escalate
• Michael Saylor explains the strategy of betting on Bitcoin

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