Strategy Buys 3459 Bitcoin Despite First Quarter Losses, Maintains 2.5% Of BTC Supply

chael Saylor hinted at the purchase a day before the official announcement, sharing a cryptic comment on social media alongside an update on the company’s Bitcoin purchases. Strategy now holds a substantial amount of Bitcoin, worth over $45 billion, obtained at an average price of $67,556 per Bitcoin, totaling about $35.9 billion including fees. This acquisition comes after a challenging Q1 for Bitcoin, which saw a significant drop in value of almost 12%.

Despite the market downturn, Strategy has maintained an aggressive acquisition strategy, demonstrating confidence in the long-term potential of Bitcoin. The company continues to have significant capital available for future purchases, with billions of dollars worth of shares available for issuance and sale under its offering programs. The “21/21 plan” aims to raise a total of $42 billion for Bitcoin acquisitions.

While some investors have raised concerns about Strategy’s premium valuation compared to its net asset value (NAV), analysts at Bernstein remain positive about the company’s outlook. With low debt levels and manageable leverage, they predict that Strategy’s Bitcoin holdings could more than double to over one million BTC by the end of 2033.

In summary, Strategy’s recent purchase of over 3,000 BTC demonstrates its commitment to expanding its Bitcoin holdings despite market fluctuations. The company’s substantial resources and ambitious acquisition plan indicate its confidence in the future of Bitcoin. Analysts remain optimistic about Strategy’s long-term prospects, citing manageable debt levels and the potential for significant growth in Bitcoin holdings in the coming years. While there may be concerns about Strategy’s current valuation, the company’s strategic approach to Bitcoin acquisitions suggests a positive outlook for the future.