Strategy becomes the Largest Institutional Holder of Bitcoin with Over 500,000 BTC
Strategy, formerly known as MicroStrategy, has officially surpassed the milestone of owning 500,000 bitcoins in its portfolio. Between March 17 and 23, the company acquired an additional 6,911 BTC for approximately $584.1 million, at an average price of $84,529 per Bitcoin. This transaction was confirmed in an 8-K filing with the SEC. With this new acquisition, Strategy now holds 506,137 BTC, equivalent to over $44 billion.
These purchases were financed through the sale of Class A common stock (MSTR) and perpetual preferred stock (STRK), following the aggressive capital-raising strategy that Michael Saylor has been implementing for several years.
A Large-Scale Capitalization Strategy
The average acquisition cost of the bitcoins held by Strategy is now $66,608 per BTC, for a total expenditure of $33.7 billion, including fees. The company alone holds nearly 2.4% of the total Bitcoin supply, limited to 21 million units, solidifying Strategy as the most exposed institutional player to the digital asset.
This accumulation comes as the company expands its financing program through hybrid securities. On March 21, it announced the launch of a Series A perpetual preferred stock at 10%, named STRF, initially set at $500 million and increased to $722.5 million. This operation is part of the global “21/21” plan to raise up to $42 billion through stock and bond issuances.
Markets Divided in the Face of Strategy’s Appetite
Meanwhile, Strategy sold 13,100 STRK shares for approximately $1.1 million and still has a capacity to raise $20.99 billion under the same program. Regarding MSTR shares, 1,975,000 were sold last week for a total of $592.6 million, with 3.57 billion in remaining capacity.
While Strategy’s market capitalization now exceeds $79.2 billion, this valuation represents a considerable premium compared to the net value of its bitcoin holdings. Some investors are questioning the sustainability of this strategy and the disconnect between the stock price and the underlying value of its treasury.
MSTR: The “Altcoin of Traditional Finance”?
The MSTR stock closed at $304 on Friday, up 0.6%, and is up 5% in pre-market trading on Monday. Over the past year, the stock has gained over 90%, although its performance since January has been limited to 1.3%. Jeff Park, Head of Alpha Strategies at Bitwise, sums up the market perception with a provocative statement: “MSTR has become the altcoin of traditional finance.”
With its unprecedented global accumulation model and unwavering commitment to Bitcoin, Strategy continues its transformation from a technology company to a crypto conglomerate, pushing the boundaries of corporate financing in the decentralized world every quarter.
