Strategy Acquires 130 BTC for $10.7 Million, Approaching 500,000 BTC
Strategy, formerly known as MicroStrategy, has added an additional 130 BTC to its portfolio for a sum of $10.7 million, at an average price of $82,981 per Bitcoin. This acquisition, funded by the sale of its perpetual STRK shares, contrasts with the company’s previous purchases, which sometimes reached several billion dollars.
With this latest transaction, Strategy now holds 499,226 BTC, with a valuation of over $41 billion. The total cost of acquiring these bitcoins is approximately $33.1 billion, with an average purchase price of $66,360 per BTC, according to its co-founder and executive chairman, Michael Saylor. In other words, the company possesses over 2.3% of the total Bitcoin supply, which is limited to 21 million units.
A Continued Aggressive Accumulation Strategy?
This acquisition is part of a massive fundraising campaign announced by Strategy on March 10, aiming to raise up to $21 billion through its perpetual STRK share program. The company has already sold 123,000 STRK shares, generating $10.7 million in cash used to finance the Bitcoin purchase. However, it has not yet issued any ordinary MSTR shares as part of its other $21 billion fundraising program.
Last month, Strategy made a significant purchase by acquiring 20,356 BTC for $1.99 billion, at an average price of $97,514 per bitcoin. This transaction was funded by the issuance of $2 billion zero-interest convertible bonds, illustrating the company’s willingness to increase its exposure to Bitcoin through all available financial means.
The US Government Takes a Stance on Bitcoin
Michael Saylor also participated in the first crypto summit organized by the White House, a strategic event held the day after Donald Trump’s executive order establishing a Bitcoin Strategic Reserve for the United States.
The US government currently holds about 200,000 BTC (worth $18 billion) seized in legal cases. A significant portion of these funds still needs to be returned to the affected victims, but the Trump administration has instructed its Treasury and Commerce Secretaries to explore budget-neutral strategies for accumulating more bitcoins, without additional cost to taxpayers.
At the same time, the executive branch has also launched a Crypto Asset Reserve consisting of other cryptocurrencies obtained through seizures, but without actively purchasing new digital assets.
An Increasing Risk for Strategy as Bitcoin Declines?
Although Strategy has an impressive market capitalization of $76.8 billion, the market premium of its MSTR stock compared to its underlying Bitcoin assets has significantly decreased in recent weeks.
The price of Bitcoin has plunged 29% since its all-time high of $109,000 in January, dropping below $77,000 on March 11 before rebounding to around $83,000 today. In parallel, MSTR stock has lost nearly 39%, continuing its correction after peaking at $473 in November.
With the price of Bitcoin now approaching its average purchase cost ($66,360), some investors are concerned that Strategy may be forced to liquidate part of its holdings in the event of a prolonged bear market. However, Vetle Lunde, head of research at K33, has dismissed these concerns, considering the company’s average entry price to be an insignificant factor given its financing structure. Strategy’s convertible bonds have a maturity of five to six years, and the majority of the funds raised come from equity rather than debt.
Resilience Despite Market Pressure
Despite this volatility, Strategy’s stock finished last Friday with a 13% gain, closing at $297.5, representing a 74% increase over the past year. However, it has opened the market with a 4% decline today as investors closely monitor the Bitcoin’s evolution and the company’s financial stability.
