Well, look what we have here. Strategy, the company formerly known as MicroStrategy, just went shopping for more Bitcoin. They picked up another 1,895 coins, spending about $180 million to do it. This happened between April 28 and May 4, according to a report they sent to the government (a regulatory filing, if you want the official term).
- Strategy, formerly MicroStrategy, purchased an additional 1,895 Bitcoins for $180 million between April 28 and May 4. This purchase increased their total holdings significantly.
- The company used proceeds from selling shares of its own stock to fund the Bitcoin purchase, part of a larger plan to raise billions for Bitcoin acquisition.
- Despite a reported net loss, analysts remain optimistic about Strategy due to its substantial Bitcoin holdings and strategies for acquiring more.
They paid around $95,167 for each Bitcoin on average. That’s a pretty specific number, isn’t it? Like knowing the exact price of every single item in your grocery cart.
So, where did Strategy get that kind of cash? They sold some of their own company shares. They offloaded 353,825 shares of their regular stock (that’s MSTR) and 575,392 shares of a different kind of share called preferred stock (that’s STRK). Together, those sales brought in the $180.3 million needed for the Bitcoin buy.
Selling these shares is part of what Strategy calls their “21/21 Plan.” Think of it like a big savings goal to buy Bitcoin. They wanted to raise $42 billion total through this plan. As of May 4, the part of the plan using the regular MSTR stock is all used up. Finished. Done.
But don’t worry, they’re not out of ideas yet. The STRK part of that 21/21 plan still has a whopping $20.87 billion they could potentially raise. That’s a lot of zeroes, isn’t it? Makes your eyes water a bit.
And because the MSTR part of the 21/21 Plan is complete, Strategy recently announced a new, even bigger plan. They call this one the “42/42 Plan.” It aims to raise another $42 billion through 2027. They plan to split that money evenly between selling more stock and taking on debt (borrowing money).
They also have other ways they raise money for Bitcoin, like selling special shares called perpetual preferred stocks (these are shares that don’t have a set end date). These are separate from those big 21/21 and 42/42 plans.
With this latest purchase, Strategy now holds a massive 555,450 Bitcoin. They bought all that Bitcoin for a total cost of $38.08 billion over time. At today’s prices, that stash is worth roughly $52.2 billion.
That means they have about $14.1 billion in what we call “paper gains.” It’s like if you bought something for $10 and now it’s worth $14. You haven’t sold it, so it’s not cash in your pocket yet, but on paper, you’re up $4. Strategy is up $14.1 billion on paper. Not bad for a day’s work, or rather, several years’ work.
Holding 555,450 Bitcoin is a seriously big deal. It’s more than 2.6% of all the Bitcoin that will ever exist. Imagine owning more than 2.6% of all the gold in the world. It’s that kind of scale.
This latest buy happened right after Strategy reported their financial results for the first three months of the year. And truth be told, those results weren’t great. They missed what analysts expected for how much money they’d make and their profit.
The company actually reported a $4.2 billion net loss. That sounds terrible, right? But a big chunk of that loss, nearly $6 billion, was just on paper. It came from something called fair value accounting rules (a way companies have to count their assets). Because the price of Bitcoin went down a bit during that time, the rules made them show a big “unrealized loss” on their Bitcoin holdings, even though they didn’t sell any.
Despite missing those financial targets, the folks who analyze companies (analysts) are still feeling pretty good about Strategy. Why? Because they own so much Bitcoin, they have clever ways to raise money to buy even more, and big investors like them.
Strategy is still the king when it comes to companies holding Bitcoin. But others are starting to catch up, or at least try. Just last month, some big names like Cantor Fitzgerald and SoftBank said they plan to start a $3.6 billion venture just to buy Bitcoin. They’re calling it Twenty One Capital.
Other companies, like Semler Scientific, KULR, and Metaplanet, have also decided to put Bitcoin in their company savings (their treasury strategy). It seems Strategy started a trend, and now others are following suit, stacking sats (buying small amounts of Bitcoin) right alongside them.
