Strategy Buys More Bitcoin, Now Holds Nearly 3% of Total Supply

On Monday, Strategy, led by Michael Saylor, confirmed another massive Bitcoin (BTC) purchase, bringing its total holdings to 580,250 BTC. This move continues the company’s bold push into Bitcoin, which has already made it one of the biggest institutional holders of the digital asset. The firm now controls close to 3% of Bitcoin’s total supply.

Strategy Spends Over $40B on Bitcoin in Latest Buy Up

Between May 19 and May 23, Strategy raised hundreds of millions of dollars by selling various company stocks. This includes its class A common stock (MSTR), perpetual strike preferred stock (STRK), and Series A perpetual Strife preferred stock (STRF). 

These combined sales brought in over $427 million in net proceeds, which the company used to fund its latest Bitcoin purchases. These sales helped fund the company’s latest Bitcoin purchases.

The Nasdaq-listed firm has spent $40.61 billion to acquire 580,250 BTC. Each coin was purchased at an average price of $69,979, including all fees and expenses. With Bitcoin’s current price rising, the Virginia-based company has a paper profit of around $22.7 billion.

Michael Saylor Hints at More Bitcoin Buys

Over the weekend, Strategy’s Chairman, Michael Saylor, posted an update to the company’s Bitcoin tracker, teasing another purchase. This came after the company announced plans to raise $2.1 billion from its 10% Series A STRF stock to buy more Bitcoin. 

It plans to grow its “42/42” plan to raise $84 billion by selling stocks and convertible notes to keep buying Bitcoin through 2027. Meanwhile, Strategy had bought 7,390 BTC for $765 million between May 12 and May 16 at an average price of $103,498 per coin.

Market Reactions and Industry Impact

Bitcoin’s price has continued to climb despite slightly recovering from $111,000 last week. The flagship crypto is trading at $109,904, up 2.17% during the previous 24 hours, according to CoinMarketCap data. 

Despite this, Strategy’s stock (MSTR) dropped 7% in pre-market trading. Analysts like Valentin Fournier of BRN warned that rising prices could lead to profit-taking, which might slow Strategy’s aggressive buying pace.

Even so, Strategy’s influence is growing. More than 70 companies now hold Bitcoin in their treasuries. Firms such as Tether-backed Twenty One, Metaplanet, KURL, and Semler Scientific are following Strategy’s lead. 

Likewise, others such as Nakamoto, founded by Bitcoin Magazine CEO David Bailey, GD Culture Group, Basel Medical Group, and Brazil’s Méliuz, have revealed plans to follow similar Bitcoin strategies. These companies are looking to build their own Bitcoin treasuries.

According to analysts at Bernstein, companies copying Strategy’s Bitcoin plan could add as much as $330 billion to Bitcoin’s total value over the next five years. This shows how much impact big companies can have on the market.