Strategy, the company formerly known as MicroStrategy, just added a big chunk of bitcoin to its pile. They bought another 7,390 BTC. That cost them about $765 million.
- Strategy, formerly MicroStrategy, purchased an additional 7,390 BTC for approximately $765 million. This latest purchase is part of their ongoing strategy to accumulate Bitcoin.
- The company holds a massive 576,230 bitcoin in total, with a paper gain of roughly $18.8 billion. This demonstrates the significant investment and potential returns from their Bitcoin holdings.
- Other companies are also jumping on the Bitcoin train, with over 70 companies now holding Bitcoin as part of their treasury. This trend suggests a growing interest in Bitcoin among corporate entities.
They picked up this bitcoin between May 12 and May 18. The average price they paid was $103,498 for each one. This comes from a filing they made with the government, an 8-K filing (a report companies file when something important happens).
Now, Strategy holds a massive 576,230 bitcoin in total. Their co-founder, Michael Saylor, shared the numbers. They paid around $40.2 billion for all of it, including fees. The average price they paid over time is much lower, about $69,726 per bitcoin.
Think about that for a second. They paid $40.2 billion and their bitcoin is now worth over $59 billion. That’s a paper gain (money they haven’t actually taken out yet) of roughly $18.8 billion. Not bad, right?
This latest purchase used money from selling company stock. They sold some of their regular stock, called MSTR, bringing in about $705.7 million. They also sold some special stock, called STRK, which added another $59.7 million.
The company has big plans to keep buying bitcoin. They have this huge plan, aiming to raise $84 billion by 2027 to buy more bitcoin. It’s like they have a never-ending shopping list for the orange coin.
Saylor, as he often does, dropped a hint about the purchase before the official filing. He posted on X (formerly Twitter) saying, “Never short a man who buys orange ink by the barrel.” It’s his way of saying he’s always buying bitcoin, which some people call “orange coin.”
Never short a man who buys orange ink by the barrel.
https://x.com/saylor/status/1924072656057356779
Not everyone loves Saylor’s approach. A former Wall Street trader named Josh Mandell pushed back on that comment. Mandell said the money isn’t Saylor’s personally, and that selling company shares to buy bitcoin makes the shares seem like regular paper money (fiat). He also questioned why he couldn’t see all the bitcoin transfers on the blockchain (the public record of bitcoin transactions).
This wasn’t Strategy’s only recent big buy. Just the week before, they bought 13,390 bitcoin for about $1.3 billion. That purchase happened between May 5 and May 11. The average price then was $99,856 per bitcoin.
They’ve been really busy buying lately. Over 300,000 of their total bitcoin was bought just in the last six months. It’s like they’re trying to collect them all.
Some market watchers think Strategy’s big buys have helped push bitcoin’s price up. But one analyst, Valentin Fournier, points out that if Strategy slows down its buying, the upward push could fade a bit. Bitcoin is trading around $103,188 right now, down a little bit over the past week.
More Companies Jump on the Bitcoin Train
Strategy isn’t the only company stacking sats (buying bitcoin). More than 70 companies now hold bitcoin as part of their company money (treasury). It seems Strategy and Saylor kicked off a trend.
Big names like Cantor Fitzgerald and SoftBank are getting involved. They’re part of a new $3.6 billion bitcoin buying project called Twenty One. Other companies like Semler Scientific and KULR have also started buying bitcoin for their company funds.
A Japanese investment company called Metaplanet just announced a big bitcoin buy too. They bought 1,004 bitcoin for about $104.3 million. That brings their total holdings to 7,800 bitcoin. It seems the corporate race is heating up.
Last week saw even more companies announce plans to get into bitcoin. Nakamoto, a company started by the head of Bitcoin Magazine, is merging with a healthcare company to start a public bitcoin treasury. They plan to raise $710 million for this.
Then there’s GD Culture Group, listed on Nasdaq (a stock exchange). They plan to sell up to $300 million in shares to fund their crypto treasury strategy, which includes buying bitcoin. And yes, they’re also buying the Official Trump memecoin, which is… interesting.
A Brazilian financial tech company, Méliuz, announced they bought 274.5 bitcoin for $28.4 million. Their shareholders agreed to the plan first. And Basel Medical Group, also on Nasdaq, announced a bold $1 billion bitcoin buying plan just last Friday.
Analysts at Bernstein think Strategy and all these other companies following their lead could add a massive $330 billion to their bitcoin holdings over the next five years. They see a future where the US government is more friendly towards crypto.
Strategy did report a big loss in the first three months of the year, about $4.2 billion. This wasn’t because they sold bitcoin for a loss. It was mostly an unrealized loss (a loss on paper) because of new accounting rules that make them show the current value of their bitcoin, which dropped during that time.
Strategy’s stock (MSTR) is worth a lot, around $109.3 billion. That’s more than the value of the bitcoin they hold, which makes some investors a bit nervous. It’s like buying a box for more than the treasure inside is worth, at least on paper.
But analysts say Strategy’s debt is manageable. They don’t have big payments due until 2028. So, even with all the borrowing and stock selling to buy bitcoin, they seem to be handling the financial side of things okay.
MSTR stock closed at $399.80 on Friday. Bitcoin has been staying just below its highest price ever recently. MSTR stock is down a bit today before the market opens, and it’s down over 33% since the start of the year. It’s a wild ride, that’s for sure.
