Strategy Acquires Over 20,000 BTC in a Strategic Purchase
Michael Saylor-led company, Strategy, continues its aggressive accumulation of Bitcoin with a massive new acquisition. On Monday morning, the company announced that they purchased 20,356 BTC for $1.99 billion, bringing their total holdings to nearly 500,000 units. This transaction was financed through a recent issuance of convertible bonds at 0% interest, raising precisely $1.99 billion after fees.
An Impressive Bitcoin Portfolio Approaching Half a Million BTC
With this latest acquisition, Strategy now holds 499,096 BTC, purchased for a total of $33.1 billion, equating to an average purchase price of $66,357 per bitcoin. Currently, with a BTC price around $95,500, the total value of these assets exceeds $47.7 billion.
A Bold and Ambitious Strategy
Michael Saylor, a staunch advocate for Bitcoin, continues to push Strategy towards an unprecedented accumulation policy. By financing through convertible bonds, he increases the company’s exposure to Bitcoin while avoiding immediate dilution of shareholders. This approach, although risky due to market volatility, has thus far paid off, with the current value of the held bitcoins far surpassing their acquisition cost.
A Mixed Market Reaction
Despite this major announcement, Strategy’s stock (MSTR) only experienced a slight pre-market increase after falling on Friday, dropping below $300, nearly 50% below its record high in November. Investors remain divided between the enthusiasm surrounding the increasing valuation of Bitcoin holdings and caution regarding the risks associated with this massive debt strategy.
