Strategy, the company you might remember as MicroStrategy, just made another big move. They’ve launched a new program to sell up to $2.1 billion worth of their special stock, called 10.00% Series A Perpetual Strife Preferred Stock (STRF). Think of it like a company selling pieces of itself to raise money, but these pieces come with a fixed payment over time. It’s a way to get cash without taking out a traditional loan.
- Strategy is selling special stock to raise $2.1 billion, similar to selling company shares to gain capital. This method allows them to acquire cash without relying on conventional loans.
- The primary use of the raised funds is for buying more bitcoin, as well as covering general corporate expenses. This strategy highlights their commitment to increasing their bitcoin holdings.
- MicroStrategy now holds over 576,230 bitcoins, worth over $64 billion, and plans to raise $84 billion to continue buying more. This shows their long-term investment in the cryptocurrency.
The plan is to sell these STRF shares slowly, watching the market carefully. They’ll look at the price and how many shares people are buying and selling. Sometimes, they might do a big sale all at once, or maybe a few smaller ones. It’s a bit like selling lemonade on a hot day; you watch how many people are thirsty and adjust your pitcher accordingly. They want to make sure they get a good price for their shares.
So, what’s the money for? Well, Strategy says it’s for “general corporate purposes.” That’s a fancy way of saying they’ll use it for whatever the company needs. But the big news, the one everyone talks about, is buying more bitcoin. They also mentioned working capital, which is just the cash a business needs to keep its lights on and pay its bills. But let’s be honest, the bitcoin part is the headline grabber.
Just recently, Strategy showed off its latest bitcoin haul. They picked up an extra 7,390 bitcoin between May 12 and May 18. That cost them about $764.9 million, with each bitcoin costing around $103,498 on average. They used money from selling other types of stock for this purchase. It’s like they have a dedicated bitcoin piggy bank, and they keep feeding it.
After that latest buy, Strategy now holds a staggering 576,230 bitcoin. Michael Saylor, the company’s co-founder and executive chairman, shared the numbers. This massive pile of digital gold is now worth over $64 billion. They bought it all at an average price of $69,726 per bitcoin, meaning their total cost was about $40.2 billion, including all the small fees and expenses. That’s a lot of bitcoin, isn’t it?
Strategy now holds a total of 576,230 BTC — worth over $64 billion — bought at an average price of $69,726 per bitcoin for a total cost of around $40.2 billion, including fees and expenses. That’s the equivalent of more than 2.7% of bitcoin’s total 21 million supply and implies around $23.8 billion of paper gains.
https://x.com/saylor/status/1924435660309467477
To put that in perspective, Strategy owns more than 2.7% of all the bitcoin that will ever exist. There are only 21 million bitcoin in total, and they have a big chunk of it. This means they’re sitting on about $23.8 billion in paper gains. That’s money they haven’t actually cashed out yet, but it shows how much their investment has grown. It’s like buying a house for a good price and watching its value soar. You feel pretty smart, don’t you?
This new STRF stock program fits right into Strategy’s bigger plan. They call it the “42/42” plan, which sounds a bit like a secret agent code. It’s their goal to raise a whopping $84 billion through selling stock and other financial tools to keep buying bitcoin all the way through 2027. They actually doubled this goal from their original “21/21” plan, which was for $42 billion. It seems they just can’t get enough bitcoin, and they’re willing to go big to get it.
Strategy isn’t alone in this game. They started this trend of companies putting bitcoin in their treasury (their company savings account). Now, over 70 companies are doing it. Names like Twenty One, Nakamoto, Metaplanet, Semler Scientific, and KULR have all jumped in. It’s like a corporate race to see who can stack the most sats (small units of bitcoin). Strategy really did pave the way for this whole idea.
Analysts, the folks who study markets and make predictions, think this trend will only grow. Experts at Bernstein believe that Strategy and all these other companies could add a massive $330 billion to their bitcoin treasuries over the next five years. They say this will happen partly because the U.S. is becoming more friendly to crypto. It’s a sign that bitcoin isn’t just for individual investors anymore; big businesses are seeing its value too.
And how did the market react to all this news? Strategy’s stock, MSTR, was up 2.4% in pre-market trading on Thursday. That’s a pretty good sign that investors like what they’re hearing. It seems the market is giving a nod of approval to Strategy’s bitcoin-buying spree. It’s almost as if they’re saying, “Keep going, you’re doing great!”