Company Buys 130 Additional Bitcoin, Now Owns More Than 499,000 BTC
Company Strategy MSTR continues to make headlines as it expands its digital asset reserves and capital raising efforts. A recent SEC filing revealed that the firm had purchased an additional 130 Bitcoins between March 10 and March 16 at an average price of just under $83,000 per Bitcoin, totaling approximately $10.7 million. This acquisition brings the company’s cumulative Bitcoin purchases to around $33.1 billion, with an average acquisition cost of $66,360 per Bitcoin.
Strategy now holds a significant amount of Bitcoin, equivalent to over 2.3% of the total 21 million Bitcoin limit. In addition to growing its digital asset reserves, Strategy is also in the process of raising capital through a preferred stock program, with $21 billion still available for sale. The company recently sold $10.7 million worth of its STRK shares, leaving the bulk of the preferred stock offering untouched.
Earlier, Strategy had purchased over 20,000 Bitcoins, spending nearly $2 billion from a zero-coupon convertible bond issuance. These strategic moves are part of the company’s plan to expand its Bitcoin treasury using a combination of debt and equity offerings. Executive chairman and co-founder Michael Saylor has been actively involved in these initiatives, including attending a recent Crypto Summit at the White House.
The United States government, following President Donald Trump’s directive, is also exploring ways to create a Strategic Bitcoin Reserve (SBR). This plan involves using the existing stash of roughly 200,000 Bitcoins acquired through asset forfeitures and implementing new mechanisms to acquire additional Bitcoin in a budget-neutral manner. The directive also outlines the formation of a U.S. Digital Asset Stockpile, extending beyond Bitcoin to include other cryptocurrencies obtained through legal means.
Despite Strategy’s substantial Bitcoin holdings and aggressive purchasing strategy, the company’s stock price has faced challenges. MSTR shares have declined by close to 50% from their peak in November, mirroring Bitcoin’s own 29% slide from January highs to March lows. Investors have expressed concerns about potential forced liquidation of Bitcoin holdings if prices continue to drop.
However, analysts believe that worries about forced sales are exaggerated, given Strategy’s debt structure and the timeline of its convertible notes. Most of the company’s capital comes from equity rather than debt, mitigating the risk of forced liquidation. Despite recent market volatility, Strategy’s stock price saw a 13% increase at the end of the last trading session, remaining up over 74% over the past year. The firm’s strategic approach to growing its Bitcoin reserves through a mix of debt and equity offerings continues to draw attention as it navigates the evolving cryptocurrency landscape.