Strategy Hits Buy Button After One-Week Pause, Adding $2 Billion In Bitcoin To Balance Sheet
Software company Strategy formerly MicroStrategy resumed buying Bitcoin last week after taking a week-long breather. Strategy now owns nearly 500K BTC in total Bitcoin holdings after the latest purchase.
The companys renewed Bitcoin acquisition could signal increased market confidence, potentially influencing other institutional investors strategies.
Strategy Boosts Bitcoin Cache By $2 Billion
Strategy has added more Bitcoin to its corporate treasury.
The company, which trades on the Nasdaq under the ticker MSTR, announced Monday that it had spent another $1.99 billion buying 20,356 orange coins between February 18 and February 23.
In its latest buying spree, the Michael Saylor-founded company bought the BTC at an average price of $97,514 per token, including expenses and fees. This puts Strategys total Bitcoin stockpile at approximately 499,096 BTC. At bitcoins current price of $94,156, the holdings are worth about $46.9 billion.
The aggregate cost of the companys Bitcoin stash is approximately $33.1 billion, which shows its long-term commitment to the worlds largest crypto.
The acquisition came as Strategy raised another $2 billion in a 0% senior convertible note offering to purchase more Bitcoin, which raised $1.99 billion after expenses. As ZyCrypto previously reported, the notes mature on March 1, 2030, and will be unsecured senior obligations bonds that arent backed by collateral.
The $2 billion convertible note offering is part of Strategys ambitious 21/21 Plan, aiming to raise $42 billion in capital in the next three years to buy more Bitcoin. The plan would see the firm raise $21 billion via equity, with another $21 billion through fixed-income securities.
The self-described Bitcoin Treasury company said it has already raised $20 billion of that $42 billion, fueling its Bitcoin acquisition spree mainly through senior convertible notes and debt.
Its recent Bitcoin acquisition of 7,633 BTC occurred in the week ending Feb. 9.
Strategys Pivot To Bitcoin
Once a little-known software intelligence company, Strategy started buying Bitcoin back in 2020 in a bid to create good returns for shareholders amid the pandemic havoc.
Then-CEO Saylor who said at the time that Bitcoin was the best investment, still asserts today that the apex cryptocurrency is an inflation hedge.
As the firms Bitcoin holdings near half a million, Strategy has an unrealized profit of roughly $13.8 billion, data from Saylortracker shows. Strategy is arguably the worlds largest corporate holder of the foremost crypto by far. For perspective, Strategy currently holds over 2.3% of Bitcoins total 21 million supply. The pseudonymous creator of Bitcoin, Satoshi Nakamoto, is projected to hold around 1.1 million BTC.
Notably, more companies are increasingly following in Strategys footsteps, adopting Bitcoin as their treasury hedge asset.
Text source: ZyCrypto
