Strategy Acquires 130 Bitcoin, Bolstering Holdings to 2% of Total Supply
Strategy has acquired 130 Bitcoin at an average price of $82,981, funded by selling series A preferred stock. The company now holds a total of 499,226 Bitcoin, valued at over $41.6 billion, representing more than 2% of Bitcoin’s total supply. Shares of Strategy have also seen substantial growth over the past year.
Strategy, a prominent business intelligence firm formerly known as MicroStrategy, has recently secured 130 Bitcoin at an average cost of $82,981 per coin, resulting in a total outlay of approximately $10.7 million for the acquisition, which occurred between March 10 and March 16. This investment was funded by the sale of its series A preferred stock, which generated about $10.7 million in net proceeds.
According to the firm’s recent SEC filing, the acquisition involved selling 123,000 shares of Strategy’s 8.00% series A perpetual strike preferred stock, and importantly, no Class A common stock was sold during the specified period. Following the latest purchase, Strategy’s cryptocurrency holdings now total 499,226 BTC, equating to a market value exceeding $41.6 billion.
The average price of the total Bitcoin holdings, as stated by Strategy’s co-founder and executive chairman, Michael Saylor, is $66,360 per BTC, which includes all associated fees and expenses. Notably, the company currently possesses over 2% of Bitcoin’s total supply, which is capped at 21 million coins.
Following the announcement, Strategy’s shares saw a 13% increase on Friday, closing near $297, marking a significant rise of over 77% in the past year, according to Yahoo Finance data. However, there has been a slight dip in stock prices in pre-market trading today.
In summary, Strategy’s recent purchase of 130 Bitcoin marks a strategic move towards enhancing its already substantial holdings. With a significant percentage of Bitcoin’s total supply now under its control and shares experiencing a notable rise, the company is positioning itself strongly in the cryptocurrency market.
Original Source: cryptobriefing.com
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