According to BlockBeats, Strategy, formerly known as MicroStrategy, has recently slowed its pace of Bitcoin accumulation compared to its peak in November last year. K33 Research Director Vetle Lunde highlighted two main reasons for this slowdown in a report released on Tuesday. Firstly, the premium of Strategy's Class A common stock, MSTR, relative to its Bitcoin holdings has decreased. Secondly, the competition among companies to hoard Bitcoin has intensified.
Between May 19 and May 25, Strategy purchased 4,020 Bitcoins at an average price of $106,237, totaling approximately $427.1 million. Of this amount, $348.7 million was financed through its latest $21 billion at-the-market (ATM) offering plan, a significant reduction from the previous week's $705.7 million and the $1.31 billion from May 5 to 11.
Lunde noted that the utilization rate of the new $21 billion ATM plan is much lower than the first $21 billion plan. From November 4 to December 16 last year, MSTR raised an average of $2.13 billion per week through ATM financing, whereas the recent three-week average is only $788 million. The emergence of other companies adopting Bitcoin reserves has provided more options for investors, potentially diverting some demand away from MSTR.
Additionally, as Strategy's Bitcoin holdings appreciate, maintaining the previous 2x net asset premium requires stronger buying support. Last week, particularly on Friday, the premium of MSTR relative to its Bitcoin holdings dropped sharply from 185% to 163%, marking a new low since April 8. Lunde added that aggressive issuance has accelerated the premium contraction, which may force MSTR to slow down its ATM financing pace. The scenario of last November, where large issuances could still boost the premium, may not be replicable.
