Here's the Scoop
Expansion Plans Include Investment of $180 Million in Bitcoin
Strategy (formerly known as MicroStrategy) bought 1,895 Bitcoin for $180 million, bringing its Bitcoin stash to 555,500 coins worth a whopping $52.4 billion, as per a recent filing. That's a 0.3% growth for the Bitcoin-loving Tysons, Virginia-based company.
Strategy funded this latest Bitcoin spree by selling $52 million worth of "STRK" preferred stock and $128.5 million worth of common shares. Although the firm can still issue $20.87 billion worth of preferred stock, its recent equity offering program for common shares has mostly been depleted after six months of steady purchases.
But don't think they're slowing down anytime soon. Strategy revealed plans for another $21 billion common shares equity offering and a targeted corporate debt of $21 billion over the next three years.
However, the first quarter wasn't all sunshine and roses. Strategy reported a massive $5.9 billion loss due to a drop in the value of its Bitcoin holdings. Despite this setback, its shares have seen a 29% surge over the past month, with the pioneering Bitcoin company's stock price dropping 4.6% on Monday to $376 per share.
Analysts at Bernstein and Benchmark remained optimistic about Strategy's Bitcoin acquisition plans, reiterating positive ratings last week. Bernstein analysts even called Strategy the "most scalable Bitcoin vehicle," while Benchmark Senior Research Analyst Mark Palmer referred to the company's BTC accumulation strategy as "audacious."
In essence, Strategy is doubling down on its Bitcoin buying ambitions, proving itself as a determining player in the Bitcoin market cycle and a highly leveraged proxy for Bitcoin exposure.
Edited by James Rubin
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(PS: Strategy is on a Bitcoin buying spree, nabbing another 1,895 coins. Shares have seen a 29% surge, despite a recent drop. Stay tuned for more updates!)
Enrichment Data:MicroStrategy, now branded as Strategy, is under the leadership of Michael Saylor and operates an aggressive Bitcoin accumulation strategy. As of early 2025, the company owns approximately 553,555 BTC, a significant increase from around 386,700 BTC at the start of the year. The company's total Bitcoin holdings cost around $37.9 billion, with an average acquisition cost of approximately $68,459 per Bitcoin.
Strategy adopts a regular, methodical weekly purchasing approach to Bitcoin, positioning the company as the largest corporate Bitcoin holder by a wide margin and acting as a high-beta Bitcoin proxy. Financially, the company reported a strong start to 2025, achieving a year-to-date "BTC Yield" of 13.7% and a BTC gain of $5.8 billion within the first quarter.
To continue funding Bitcoin purchases, Strategy announced a new $21 billion at-the-market (ATM) common stock equity offering. The company also follows specific accounting standards that require recognizing gains and losses from their Bitcoin holdings in net income reports, reflecting the volatility and potential upside or downside of their Bitcoin investments.
The overall strategy for Strategy includes:
- Continuing large-scale, regular Bitcoin acquisitions with the aim to significantly increase its BTC holdings beyond 550,000 BTC.
- Using equity capital raising, notably a $21 billion ATM stock offering, to fund ongoing Bitcoin purchases.
- Targeting a 25% BTC yield and $15 billion in Bitcoin-related gains for 2025.
- Positioning the company as a high-beta Bitcoin proxy.
- Embracing transparent accounting to reflect the impact of Bitcoin's fair value on their financials.
This strategy aligns with Michael Saylor's vision of Bitcoin as the premier capital allocation strategy for growth-oriented companies in a shifting economic and technological landscape.
- Michael Saylor's Strategy, previously known as MicroStrategy, has been on a Bitcoin buying spree, recently adding 1,895 coins worth $180 million to its existing stash of 555,500 Bitcoins.
- To finance its Bitcoin purchases, Strategy is utilizing a combination of selling "STRK" preferred stock, common shares, and planning a new $21 billion common shares equity offering.
- Despite a reported $5.9 billion loss due to Bitcoin's value fluctuations in the first quarter, Strategy's shares have experienced a 29% surge over the past month, currently trading at $376 per share.
- Analysts at Bernstein and Benchmark view Strategy's Bitcoin acquisition plans as scalable and audacious, particularly as Strategy aims to significantly increase its BTC holdings beyond 550,000 coins and target a 25% BTC yield.
- By embracing a methodical weekly purchasing approach and adopting transparent accounting, Strategy aims to position itself as a high-beta Bitcoin proxy in the rapidly evolving crypto ecosystem and finance sector.
