Strategy raised $427 million by selling equity to expand its Bitcoin holdings
Despite Bitcoin’s volatility, Strategy’s significant purchase may affect corporate crypto adoption trends
Strategy, the Bitcoin-focused company co-founded by Michael Saylor, has recently attracted attention with a significant acquisition of Bitcoin [BTC].
Last week, the company acquired an additional 4,020 bitcoins for approximately $427.1 million, pushing its total holdings to a staggering 580,250 BTC as per the press release.
Strategy’s Bitcoin purchase
Acquired at an average cost of $69,979 per coin, Strategy’s investment now represents close to 3% of Bitcoin’s capped 21 million supply.
With over $22.7 billion in unrealized profits, the firm continues to reinforce its conviction in Bitcoin as a long-term treasury asset. Despite the crypto’s price volatility and market speculation persisting.
What’s more?
To finance its latest Bitcoin acquisition, Strategy tapped into multiple equity instruments, including its class A common stock and two types of perpetual preferred shares.
Between 19 May and 23 May, the company secured roughly $427 million by strategically liquidating certain assets.
The transactions involved selling 847,000 MSTR shares, generating $348.7 million, 678,970 STRK shares worth $67.9 million, and 104,423 STRF shares – Amounting to $10.4 million.
Impact on MSTR’s stock price
This coincided with Bitcoin trading at $109,796.86, reflecting only a marginal 0.03% dip over the last 24 hours, according to CoinMarketCap.
However, despite Strategy’s significant Bitcoin purchase, its stock (MSTR) was down 7.50% on the charts. It was trading at $369.51 at press time, as per Google Finance data.
Strategy acts as a playbook for other institutions
And yet, the company’s long-standing conviction in Bitcoin continues to set the tone for corporate adoption strategies worldwide.
Tesla, for example, still holds over $1.25 billion worth of BTC, reaffirming its position as a top institutional HODLer.
Meanwhile, Japan’s Metaplanet has quickly risen through the ranks, with a recent acquisition of 1,241 BTC pushing its total holdings to 6,796 BTC. It has even surpassed El Salvador’s 6,174 BTC reserve, as reported by Bitcoin Office.
This is a sign of how Strategy’s aggressive Bitcoin accumulation has become a blueprint for others. It also signals a shift in how major entities perceive and store long-term value in the crypto ecosystem.
