Strategy Expands Its Bitcoin Holdings with $1.34B Purchase

Strategy, a Nasdaq-listed company, has continued to grow its Bitcoin (BTC) holdings. Between May 5 and May 11, the company bought an additional 13,390 BTC for about $1.34 billion. This was shared in a recent filing with the U.S. Securities and Exchange Commission (SEC). With this new purchase, the company now holds a total of 568,840 BTC, worth more than $59 billion. Strategy’s Massive Bitcoin Reserve Previously known as MicroStrategy, the company now owns more than 2.7% of the total Bitcoin in circulation. The average price per Bitcoin purchased by Strategy stands at $69,287. This brings the total amount the company has spent on Bitcoin to about $39.4 billion, including fees and expenses. This includes more than 300,000 BTC acquired in the last six months alone. Strategy funded this latest Bitcoin purchase by selling shares of its class A common stock (MSTR) and perpetual strike preferred stock (STRK). The company also raised $1.31 billion from selling 3.22 million MSTR shares and another $25.1 million from STRK shares. The recent buy-up is part of a bigger plan to raise more money and buy even more Bitcoin. Strategy is following a broader financial plan known as the “42/42.” The company aims to raise $84 billion by selling shares and convertible notes by 2027. This plan was increased from an earlier goal of $42 billion, showing the company’s strong interest in growing its Bitcoin stash. Despite raising massive amounts of capital, Strategy has low debt levels and no major payments due until 2028. This allows the company to keep buying more Bitcoin in the years ahead. More Corporate Companies Are Joining the Trend Strategy’s focus on Bitcoin has inspired other companies to adopt similar strategies. Over 70 companies, including Klur, Semler Scientific , Metaplanet, and MARA , now hold the flagship cryptocurrency as part of their corporate treasury. Well-known companies such as Cantor Fitzgerald, SoftBank, and Bitfinex are joining the trend with plans to launch a $3.6 billion Bitcoin venture called Twenty One. This growing trend shows that more companies see Bitcoin as a valuable investment. Market Reactions and Outlook While Strategy’s approach has raised eyebrows among some investors, the company’s market valuation continues to climb. As of May 11, Strategy’s market cap is $113.7 billion, trading at a premium compared to its Bitcoin holdings. Despite some concerns over the firm’s premium-to-NAV (net asset value) valuation, analysts are generally optimistic. Analysts at Bernstein still believe the stock will perform well and have set a price target of $600. They also predicted that the Strategy’s Bitcoin holdings could increase to over $1 million by 2033. Analysts believe Strategy’s large Bitcoin stash and its ability to raise capital put the company in a strong position for future growth. The post Strategy Expands Its Bitcoin Holdings with $1.34B Purchase appeared first on TheCoinrise.com .

Source: The Coin Rise