Bitcoin enterprise giant Strategy (formerly MicroStrategy) has once again made a significant investment. According to a document submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, the company purchased 7,390 bitcoins at an average price of $103,498 each, amounting to a total expenditure of $764.9 million between May 12 and 18.
According to co-founder and executive chairman Michael Saylor, this latest purchase has increased Strategy's total bitcoin holdings to 576,230 coins.
Based on the current price of bitcoin, the value of their holdings has exceeded $59 billion, with a total investment cost of approximately $40.2 billion and an average entry price of $69,726 per coin. This indicates that the company's unrealized profits (unrealized gains) have reached $18.8 billion, accounting for 2.7% of the total global bitcoin supply of 21 million coins.
This latest buying spree was funded by Strategy selling its own shares. According to the announcement, the company sold 1.71 million shares of MSTR last week, raising approximately $706 million; at the same time, it sold 620,000 shares of preferred stock STRK, raising $59.7 million.
As of May 18, Strategy still has as much as $18.98 billion in MSTR stock and $20.79 billion in STRK pending issuance, providing ample liquidity for further capital deployment, indicating that Strategy's bitcoin buying actions are far from over.
It is worth noting that the '42/42 Plan' that Strategy is executing aims to raise up to $84 billion through stock and convertible bonds before 2027 to purchase more bitcoin. This plan was originally '21/21,' meaning $42 billion, but has now doubled in scale and intensity, demonstrating Strategy's strategic ambition as market conditions for bitcoin gradually improve.
BRN analyst Valentin Fournier pointed out that Strategy's past aggressive buying has indeed injected momentum into bitcoin prices; however, once the pace of purchases slows, the market will inevitably have to digest the fact that this influx of capital is gradually dissipating.
According to CoinGecko, bitcoin is currently priced at $106,068, having increased by 4% over the past week.
Strategy's aggressive bitcoin buying spree has inspired companies worldwide to follow suit. Recent statistics show that over 70 companies globally have adopted bitcoin as a corporate asset allocation tool.
According to Bernstein's forecast, if the current wave of corporate bitcoin buying continues to gain momentum, coupled with a friendlier U.S. policy and clearer regulatory environment, major institutions including Strategy are expected to collectively invest up to $330 billion in incremental funds over the next five years.
