Strategy (formerly MicroStrategy) has once again expanded its Bitcoin holdings. According to an announcement released on Monday, this Bitcoin-focused company purchased 4,020 Bitcoins last week at an average price of $106,237 per coin, totaling approximately $427.1 million.
This latest purchase brings Strategy's total Bitcoin holdings to 580,250 coins, with a total investment amount of approximately $40.61 billion, at an average purchase price of $69,979 per coin (including related fees). Based on current market prices, Strategy's unrealized gains amount to $22.7 billion, representing nearly 3% of Bitcoin's total supply of 21 million coins.
The funds for this purchase come from several recent financing activities by Strategy, including the sale of its Class A common stock (MSTR), perpetual preferred stock (STRK), and 10% Series A perpetual preferred stock (STRF). Specifically, from May 19 to May 23, Strategy raised $348.7 million by selling 847,000 shares of MSTR stock, obtained $67.9 million by selling 678,970 shares of STRK stock, and realized a net profit of $10.4 million by selling 104,423 shares of STRF stock.
Last week, Strategy also announced a $2.1 billion Series A perpetual preferred stock (STRF) issuance plan, which is part of its "42/42" expansion plan. This plan aims to raise $84 billion through stock and convertible bonds to continue purchasing Bitcoin by 2027.
Michael Saylor, co-founder and Executive Chairman of Strategy, is a staunch supporter of Bitcoin. In a tweet on Sunday, he hinted at the upcoming announcement of new Bitcoin acquisition dynamics and quoted his investment philosophy: "I only buy Bitcoin with money I can afford to lose."
Bitcoin market and Strategy's expansion
Strategy's Bitcoin accumulation strategy is closely linked to the strong performance of Bitcoin prices. According to The Block, Bitcoin's price rose over 6.5% last week and is currently trading around $109,884. However, despite Bitcoin's record highs, some market analysts are cautious about Strategy's aggressive buying strategy.
BRN analyst Valentin Fournier stated in an interview: "As Bitcoin prices continue to break records, other market participants may choose to take profits, which could have some impact on Strategy's continued buying enthusiasm."
Earlier this month, Strategy had purchased 7,390 Bitcoins at an average price of $103,498 per coin, with a total cost of approximately $765 million, increasing its holdings to 576,230 coins. This series of large-scale purchases further solidified its position as the world's largest corporate holder of Bitcoin.
"Strategy Effect" drives institutional imitation trend
Strategy's Bitcoin accumulation strategy is prompting more institutions to follow suit. It is estimated that more than 70 entities currently confirm holding Bitcoin on their balance sheets, including Tether-backed Twenty One, KURL, Metaplanet, and Semler Scientific.
In addition, other companies are joining this trend. For example, Nakamoto, founded by Bitcoin Magazine CEO David Bailey, as well as Nasdaq-listed GD Culture Group and Basel Medical Group. Brazilian fintech startup Méliuz has also announced plans to establish a Bitcoin asset reserve.
According to Bernstein analysts' forecasts, these "Strategy imitators" could add $330 billion in market value to the Bitcoin market over the next five years.
