Strategy Doubles Down on Bitcoin with $204 Million Purchase

Strategy, a company known for its ambitious cryptocurrency investment strategy, has made another substantial addition to its Bitcoin holdings. According to a recent filing, the company acquired 3,015 BTC between February 23 and March 1 for approximately $204.1 million. This brings Strategy's total Bitcoin holdings to 720,737 BTC, with a combined value of over $47 billion.

The average purchase price per coin was around $67,700, significantly higher than the current market price of approximately $65,500. This indicates that Strategy has absorbed an unrealized loss on its aggregate cost basis. Despite this, the company's position in Bitcoin remains substantial, with a stake of over 3.4% of the total eventual supply cap.

Strategy funded these purchases through at-the-market sales of common and preferred stock. The company sold 1,730,563 shares of Class A common stock, generating approximately $229.9 million in net proceeds. Additionally, Strategy sold 71,590 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, raising about $7.1 million.

This purchase is part of Strategy's '42/42' plan, which targets $84 billion in equity offerings and convertible notes through 2027 to fund additional Bitcoin acquisitions. The company has been using a mix of equity issuance, convertible debt, and preferred stock offerings to finance its buying strategy, tying it to the long-term price performance of Bitcoin.