- Strategy acquires 1,955 BTC for $217.4 million, boosting holdings.
- Company’s Bitcoin holdings now exceed 638,000 BTC with new acquisition.
- Strategy funds purchase through equity offerings, increasing Bitcoin stake.
Strategy, formerly MicroStrategy, has increased its Bitcoin holdings with the acquisition of 1,955 BTC for approximately $217.4 million.This was purchased between September 2 and 7 at an average price of $111,196 per bitcoin. This purchase increases the total number of bitcoins that the company owns to a staggering 638,460 BTC, which is worth approximately $71 billion.
The recent acquisition is part of Strategy’s ongoing trend of building on its Bitcoin holdings regardless of market volatility. The total amount of Bitcoin owned by the firm now covers a greater percentage of the total 21 million supply of Bitcoin, more than 3%. The average price at which they were bought is cited to be $73880 per bitcoin, resulting in paper gains of around $24 billion.
The company used the proceeds of the at-the-market (ATMs) offerings, such as Class A common stock (MSTR) and perpetual preferred stocks, such as STRK, STRF, and STRD, to finance these purchases. Such equity sales enable the company to invest in additional Bitcoin purchases. Strategy preferred stocks, including STRK, STRC, STRF, and STRD, are important programs, and the total offerings are in billions of dollars.
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The Financing Strategy Behind Bitcoin Treasury Company’s Growth
Strategy’s approach involves raising capital through perpetual preferred stocks, allowing it to fund Bitcoin acquisitions without selling off its assets. STRD provides the company with the best risk-reward profile, whereas STRK has the potential for an equity upside because of its convertibility. STRF, however, is a more conservative investment with a cumulative dividend of 10%.
The capital raise plan will be instrumental in bank rolling the aggressive acquisition policy of the company. Initially targeting $42 billion through equity offerings and convertible notes by 2027, Strategy now aims for $84 billion. This increased target is an indication of the increased ambition of the company further to consolidate its Bitcoin investments as a long-term investment initiative.
Strategy’s continued investment in Bitcoin strengthens its position in the cryptocurrency market, demonstrating its dedication to Bitcoin as a core asset. By leveraging preferred stock offerings, the company has created a sustainable model for continuing to grow its holdings and capitalizing on Bitcoin’s price movements in the future.
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