Strategy, formerly known as MicroStrategy, has become the first public company to hold more than 500,000 bitcoins after its latest cryptocurrency acquisition.
Strategy’s Bitcoin Holdings
On March 24th, founder Michael Saylor announced the purchase of an additional 6,911 BTC worth $584 million. This brings the company’s total holdings to 506,137 BTC, valued at $43.9 billion. This represents 2.4% of the total BTC supply, capped at 21 million coins.
Company's Share Performance
Since adopting an aggressive BTC strategy in 2020, Strategy’s shares, trading under MSTR, have grown significantly. Over the past five years, MSTR has increased by 2,115%, outperforming the 638% BTC rally by 3.3 times. On a monthly basis, MSTR rose nearly 25%, compared to BTC's 1% increase. Year-to-date, MSTR is up 12% while BTC has decreased by 8%.
21/21 Plan and Financial Strategies
The latest bitcoin purchase was financed by the sale of MSTR and STRK stocks, according to an SEC filing. Analyst James Van Straten predicts that the company could acquire an additional 7K BTC in the coming days. The ongoing plan to raise $42 billion through stock issuance and debt for BTC purchases is known as the 21/21 plan.
Strategy continues to significantly increase its bitcoin holdings, positioning itself as a leader among public companies in this space. Their strategies and financial maneuvers demonstrate a long-term belief in cryptocurrency as an important investment vehicle.
