Key Points
- Strategy, co-founded by Michael Saylor, has recently purchased an additional 4,020 bitcoins for approximately $427.1 million.
- The company’s significant acquisition of Bitcoin is influencing corporate adoption strategies worldwide.
Strategy, a company with a significant focus on Bitcoin (BTC), has recently made a substantial purchase of the cryptocurrency. Last week, the firm added 4,020 bitcoins to its portfolio, costing around $427.1 million. This acquisition brings the company’s total holdings to an impressive 580,250 BTC.
Details of the Purchase
The bitcoins were acquired at an average cost of $69,979 per coin, meaning that Strategy’s investment now accounts for nearly 3% of Bitcoin’s maximum supply of 21 million. Despite the continued volatility and market speculation surrounding Bitcoin, Strategy maintains its belief in the cryptocurrency as a long-term treasury asset, with over $22.7 billion in unrealized profits.
To fund this latest Bitcoin purchase, Strategy utilized several equity instruments, including class A common stock and two types of perpetual preferred shares. Between May 19 and May 23, the company managed to secure approximately $427 million by strategically liquidating certain assets.
Impact on the Market
Despite the significant Bitcoin purchase, Strategy’s stock (MSTR) experienced a 7.50% drop. As of the latest data, it was trading at $369.51. However, the company’s steadfast belief in Bitcoin continues to influence corporate adoption strategies globally.
For instance, Tesla still holds over $1.25 billion worth of Bitcoin, reaffirming its position as a leading institutional holder. Meanwhile, Japan’s Metaplanet has recently acquired 1,241 BTC, bringing its total holdings to 6,796 BTC, surpassing even El Salvador’s 6,174 BTC reserve. These examples illustrate how Strategy’s aggressive Bitcoin accumulation has become a model for other entities, indicating a shift in how major organizations perceive and store long-term value in the crypto ecosystem.
