Strategy, formerly known as MicroStrategy, has made yet another substantial investment in cryptocurrency, adding $1.99 billion to Bitcoin.
New Bitcoin Investment
According to the Form 8-K report filed with the Securities and Exchange Commission (SEC) on February 24, 2025, Strategy purchased 20,356 bitcoins for a total of $1.99 billion between February 18 and 23. The average purchase price was approximately $97,514 per bitcoin, including expenses. Consequently, Strategy now holds a total of 499,096 BTC, which is valued at over $47 billion at current market prices.
Financing Through Bonds
This purchase was funded through the issuance of bonds worth $2 billion. These bonds were offered privately to institutional investors and do not accrue interest, but they can be converted into Strategy's class A shares. The initial conversion rate is 2.3072 shares for every $1,000 principal amount of bonds, representing a 35% premium over the average market price of shares as of February 19, 2025.
Investor Interest
Strategy has also attracted the attention of major institutional investors. BlackRock increased its stake in the company from 4.09% to 5%, signaling strong confidence in Strategy's investment approach. Additionally, 12 U.S. states also own shares in Strategy, highlighting its significance in the cryptocurrency industry.
Strategy continues to solidify its position in the cryptocurrency industry through strategic investments and attracting institutional investors, confirming its market leadership.
