Key Takeaways
- Strategy, formerly known as MicroStrategy, purchased another large amount of bitcoin, valued at roughly $2 billion, for its treasury.
- The bitcoin treasury company now holds roughly 2.3% of the total bitcoin supply, with 499,096 bitcoin on its balance sheet.
- Strategy has purchased bitcoin nearly every week since the first half of November, making the buys through debt and equity offerings.
- This most recent purchase was Strategy’s largest since Dec. 9.
Business intelligence and bitcoin treasury company Strategy (MSTR) said Monday it has again expanded its bitcoin holdings, acquiring nearly $2 billion more of the digital currency.
Strategy, formerly known as MicroStrategy, said in a regulatory filing that it purchased an additional 20,356 bitcoin at an average price of $97,514. The purchase, which was funded through a zero-coupon convertible note offering, brings the company’s total bitcoin reserves to 499,096 bitcoin.
With this latest purchase, Strategy now holds more than 2.3% of bitcoin’s fully diluted supply capped at roughly 21 million. According to bitcoin supply tracker BitcoinTreasuries, BlackRock’s iShares Bitcoin Trust (IBIT) is the only other entity with a larger share of the total bitcoin supply on its books, at nearly 2.8% of total existing bitcoin.
Largest Bitcoin Purchase Since Early December
Over the weekend, Strategy Executive Chairman Michael Saylor telegraphed the latest purchase announcement on X, as he has done previously. Strategy has announced a new bitcoin purchase nearly every week since November. This week’s buy was the largest such purchase since Dec. 9.
Strategy has been using a combination of debt and equity offerings to fuel its accumulation of bitcoin.
The aggressive manner in which Strategy has been accumulating bitcoin has led to a massive increase in its stock market capitalization over the past few years; however, there are still plenty of skeptics who do not view the approach as sustainable over the long term.
Strategy shares were down about 4% in late trading Monday, though the stock is still up more than 300% over the past 12 months. Bitcoin, which has traded within a relatively narrow range in recent weeks, was around $95,000, well below its record high level of around $109,000 set last month.
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