Business intelligence and bitcoin treasury company Strategy (MSTR) has purchased an additional 20,356 bitcoin at an average price of $97,514.1, bringing its total bitcoin reserves to 499,096. The purchase, funded through a zero-coupon convertible note offering, brings Strategy’s holdings to more than 2.3% of the total bitcoin supply. This is Strategy’s largest bitcoin purchase since December 9, and it marks nearly $2 billion in new bitcoin acquisitions.
Strategy has been using a combination of debt and equity offerings to fuel its accumulation of bitcoin, announcing new purchases nearly every week since November. The company’s approach has led to significant increases in its stock market capitalization over the past few years, but some skeptics question the sustainability of this strategy. Despite this, Strategy shares remain up more than 300% over the past 12 months.
The latest purchase brings Strategy’s total bitcoin holdings to nearly $3 billion, and it solidifies the company’s position as a major player in the bitcoin market. With its aggressive approach to accumulating bitcoin, Strategy is continuing to make headlines and shape the conversation around the future of cryptocurrency.
Source: https://www.investopedia.com/strategy-buys-almost-usd2b-more-bitcoin-stash-nears-500000-btc-microstrategy-11685087