Well, they did it again. Strategy, the company that really, really likes Bitcoin, just added a whole bunch more to their stash. It seems their buying spree isn’t slowing down one bit, does it?
- Strategy, also known as MicroStrategy, recently acquired an additional 13,390 Bitcoins for approximately $1.34 billion. This brings their total holdings to a staggering 568,840 Bitcoins.
- The company has a long-term plan to raise a substantial amount of money, around $84 billion by 2027, to continue purchasing Bitcoin. They are using stock sales to fund these purchases.
- Other companies are also joining the trend, with over 70 now holding Bitcoin, potentially adding a massive $330 billion worth of Bitcoin to their holdings in the next five years.
Between May 5 and May 11, they picked up another 13,390 Bitcoin. That cost them around $1.34 billion. If you do the math, and honestly, who wants to do math on a Monday, that comes out to about $99,856 for each Bitcoin they bought during that week. They told the government this in a filing, so it’s official.
Now, their grand total of Bitcoin holdings sits at a staggering 568,840. That’s worth over $59 billion right now. They bought all that Bitcoin for a total cost of roughly $39.4 billion, including all the little fees and costs that add up. Their average price across all their buys is about $69,287 per Bitcoin. So, they’re sitting on a nice pile of paper gains, something like $20 billion.
Think about this: 568,840 Bitcoin is more than 2.7% of all the Bitcoin that will ever exist. That’s a big chunk. And get this, over half of their entire hoard, 303,230 Bitcoin to be exact, was bought just in the last six months. That’s some serious shopping.
So, where did they get the money for this latest haul? They sold some of their own company stock. They sold shares of their regular stock, called MSTR, and also some special preferred stock called STRK. They got about $1.31 billion from selling MSTR shares and another $25.1 million from selling STRK shares. They still have billions of dollars worth of these stocks they could sell later if they want to buy even more Bitcoin. It’s like having a big piggy bank they can dip into.
This isn’t just a one-off thing. Strategy has this big plan to raise a ton of money, something like $84 billion by 2027, to keep buying Bitcoin. They started with a plan to raise $42 billion, but they’ve already used up the part where they sell regular stock, so they doubled down on the goal. It makes you wonder, how much Bitcoin is enough Bitcoin?
Michael Saylor, the guy who co-founded the company and is still in charge, sort of hinted this latest buy was coming. He put out an update on their Bitcoin tracker on Sunday and just said, “Connect the dots.” Sometimes he likes to keep us guessing, doesn’t he?
Before this latest purchase, they had just bought 1,895 Bitcoin between April 28 and May 4. That cost them around $180 million, at an average price of $95,167 each. That brought their total to 555,450 Bitcoin at the time. It seems they can’t go more than a week or two without adding to the pile.
Strategy has acquired an additional 13,390 BTC for ~$1.34B at an average price of $99,856 per bitcoin. As of 5/11/24, Strategy holds 568,840 BTC acquired for ~$39.4B at an average price of $69,287 per bitcoin.
https://www.sec.gov/Archives/edgar/data/1050446/000095017025068580/mstr-20250331.htm
https://x.com/saylor/status/1921898712801874273
More Companies Are Joining the Bitcoin Party
Strategy isn’t the only company getting into the Bitcoin treasury game. Over 70 companies now hold Bitcoin in some way. It’s like a trend started by Strategy and Saylor, and now others are following suit. It makes you wonder if this will become a standard thing for businesses.
Just recently, some big names like Cantor Fitzgerald and SoftBank announced they’re part of a new $3.6 billion venture specifically to buy Bitcoin. They’re joining companies like Semler Scientific, KULR, and Metaplanet, who have also started buying Bitcoin for their company’s balance sheet.
Some smart people who look at markets, like the analysts over at Bernstein, think that Strategy and all these other companies copying their move could add a massive $330 billion worth of Bitcoin to their holdings over the next five years. They think this will happen partly because the rules and feelings about crypto in the U.S. might become more friendly.
Now, Strategy did report a big net loss for the first three months of the year, about $4.2 billion. But that was mostly because of new accounting rules that make them show unrealized losses (money they haven’t actually lost yet, just looks that way on paper) on their Bitcoin. It was around $6 billion in unrealized losses during that time. Accounting can be a funny business, can’t it?
Strategy’s stock, MSTR, is worth a lot more than just the value of the Bitcoin they hold. Their market value is around $113.7 billion, while their Bitcoin is worth about $59 billion. That means the stock trades at a big premium, like paying extra for a brand name even if the stuff inside is the same. Some folks worry about this premium and all the ways Strategy keeps raising money to buy more Bitcoin.
But analysts say the company’s debt isn’t too bad, and they don’t have big payments due until 2028. So, they think Strategy can handle the money they’ve borrowed. It’s a bit like taking out a loan, but you don’t have to start paying it back for a while. Gives you time to earn money, hopefully.
“It’s pretty amazing, the value of Strategy the company is still double the value of just its Bitcoin,” analysts at K33 said last week. They noted this premium has stayed high this year, even though the company has sold a lot of new stock to raise money. Selling new stock usually makes the existing shares worth a little less per share (called dilution), but Strategy’s stock has held up, letting them keep buying Bitcoin aggressively. It’s quite the strategy, isn’t it?
Strategy’s stock closed at $416.03 on Friday. Bitcoin had a good week, going up over 10% and getting close to its highest price ever. On Monday morning, before the market opened, MSTR was up a bit more, about 1.5%. For the whole year so far, the stock is up a solid 38.6%. Not too shabby.
Some analysts are still feeling good about the stock. Benchmark recently said to “buy” MSTR and thinks it could go to $650. Bernstein also kept their positive rating, saying it should “outperform” and targeting $600 for the stock price. It seems the market and some experts are still on board with Strategy’s Bitcoin plan, for now anyway.
