Strategy Makes Massive Bitcoin Purchase Amidst Market Uncertainty

By: Isha Das

In a strategic move to bolster its crypto portfolio, Strategy, previously known as MicroStrategy, has acquired 22,048 Bitcoin over the span of March 24 to March 30, at an average purchase price of $86,969 per Bitcoin. The total acquisition, valued at approximately $1.92 billion, elevates Strategy's Bitcoin holdings to an impressive 528,185 BTC. Despite this significant purchase, the company's investment is currently in the red by over $100 million, as Bitcoin experienced a price decline to around $82k shortly after the acquisition.

The funds for this extensive Bitcoin acquisition were raised through a combination of capital-raising activities. This includes proceeds from the company’s at-the-market (ATM) common stock and preferred stock offerings, alongside a $711.2 million public offering of 10% Series A Perpetual Strife Preferred Stock. These financing strategies form part of Strategy's multi-channel capital strategy to support its aggressive Bitcoin accumulation goals.

Holding approximately 2.55% of Bitcoin's circulating supply, Strategy has firmly positioned itself at the forefront of Bitcoin investment among corporate entities. The company has spent a total of $35.63 billion on its BTC holdings, setting a record for corporate Bitcoin treasury. This acquisition is aligned with Strategy's long-term vision of utilizing Bitcoin as a reserve asset. The firm aims to further expand its treasury with a 21/21 Plan, which targets raising $42 billion in future acquisitions. Although the firm faces potential risks from Bitcoin volatility and regulatory changes, CEO Michael Saylor maintains a bullish outlook on Bitcoin's future value, projecting it could exceed $49 million per coin under optimistic scenarios.