Strategy's $742M Bitcoin Buy
Strategy Resumes Bitcoin Purchases
Michael Saylor's Strategy, formerly MicroStrategy, has announced the acquisition of 7,633 Bitcoin for approximately $742 million. This purchase, made between February 3rd and 9th, 2025, follows a brief pause in acquisitions and brings Strategy's total Bitcoin holdings to 478,740 BTC.
Key Details of the Acquisition:
- Purchase Price: ~$97,255 per Bitcoin
- Total Value: ~$742 million
- Total Holdings: 478,740 BTC
- Total Holdings Value: ~$46 billion (at current market prices)
- Average Purchase Price (All Holdings): ~$65,033 per Bitcoin
The Bitcoin were acquired using net proceeds from the sale of Class A common stock and additional proceeds from a preferred stock offering. 516,413 shares of Class A common stock were sold, generating approximately $179 million in net proceeds. As of February 9th, 2025, approximately $4.17 billion of shares remained available for issuance and sale. A public offering of 7,300,000 preferred shares also generated an estimated $563 million in net proceeds.
Funding Strategy and Future Plans
Recent shareholder approval to significantly increase authorized shares supports Strategy's ambitious Bitcoin treasury strategy. The company aims to raise $42 billion by 2027 to continue its Bitcoin acquisitions. This reflects a continued bullish outlook on Bitcoin's long-term value.
Impact and Market Reaction:
- Bitcoin Yield: Strategy's Bitcoin yield reached 4.1% year-to-date.
- Stock Price: Strategy's shares saw a 2% surge in pre-market trading on Monday, February 10th, 2025, following the announcement.
Note: All figures are approximate and based on information available at the time of publishing. Market conditions are dynamic, and values may fluctuate.
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