- Strategy increases Bitcoin holdings, now worth $48.8 billion and counting.
- Firm sells millions in stock to fund $168M Bitcoin acquisition.
- Strategy’s $84 billion fundraising plan aims for massive Bitcoin growth.
Strategy, a major Bitcoin investment firm, has ramped up its Bitcoin holdings with a fresh acquisition. Between February 9 and February 16, the firm purchased an additional 2,486 BTC for about $168.4 million, pushing its total Bitcoin portfolio to an enormous 717,131 BTC, valued at $48.8 billion. These latest additions were bought at an average price of $67,710 per Bitcoin.
This new acquisition adds to Strategy’s ongoing strategy of steadily increasing its Bitcoin stake. The firm’s total investment in Bitcoin has now reached approximately $54.5 billion, including fees and expenses. Despite holding a massive 3.4% of Bitcoin’s 21 million coin cap, Strategy’s holdings are currently underwater, with a paper loss of around $5.7 billion.
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To fund these Bitcoin purchases, Strategy has sold shares of its Class A common stock (MSTR) and its perpetual Stretch preferred stock (STRC). In this latest round, the firm sold 660,000 MSTR shares for $90.5 million and 785,354 STRC shares for $78.4 million. Under its active ATM programs, there remains $7.88 billion worth of MSTR shares and $3.54 billion worth of STRC shares available for sale.
Strategy’s Ambitious Plans to Expand Bitcoin Holdings
Looking ahead, Strategy has outlined an aggressive fundraising target of $84 billion through equity offerings and convertible notes by 2027. The company is relying on a variety of financial instruments to achieve its goal, including convertible and non-convertible preferred stocks, which will help raise capital for additional Bitcoin acquisitions.
Despite the market volatility, the company’s co-founder and executive chairman, Michael Saylor, remains confident in Bitcoin’s future performance. Strategy has indicated that it can withstand a significant decline in Bitcoin’s price, even down to $8,000, without jeopardizing its financial stability. Analysts have noted that Strategy’s conservative debt structure and ample cash reserves position it well to ride out any downturns in the market.
With its bold expansion plans and extensive Bitcoin holdings, Strategy is positioning itself as a key player in the Bitcoin space, poised for significant growth if Bitcoin continues its upward trajectory in the years to come.
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