Strategy (NASDAQ:MSTR) has made another bold investment in Bitcoin. The company acquired an additional 20,356 BTC for close to $2 billion, with an average purchase price of $97,514 per coin. This raises its total Bitcoin holdings to an impressive 499,096 BTC, with an average acquisition price of $66,357 per Bitcoin. This purchase was financed through a new $2 billion convertible note offering, a part of Strategy’s ambitious 21/21 Plan to collect $42 billion over the next three years for further Bitcoin acquisitions. The notes, which feature a 0% coupon and mature in 2030, indicate that Strategy is committed to its significant crypto investment and isn’t slowing down anytime soon.
Despite reporting a net loss of $670 million in Q4 2024, the company boasts an unrealized gain of $14.8 billion on its Bitcoin assets. It has already secured $20 billion of its investment target, primarily through debt and equity offerings, which is driving its continuous accumulation of Bitcoin. Institutional investors are becoming more interested; for instance, BlackRock has increased its stake in Strategy to 5%, reflecting a growing trust in its Bitcoin-centric strategy.
At the same time, traditional finance is slowly embracing Strategy’s approach. A total of twelve U.S. states now hold a combined $330 million in Strategy stock via their pension funds and treasuries. As Bitcoin adoption rises, the firm is establishing itself as a leading corporate Bitcoin whale, reshaping the way public companies allocate capital in the digital era.
This article was originally published on GuruFocus.
