Strategy (formerly MicroStrategy) announced on March 31 that it acquired 22,048 Bitcoin (BTC) worth $1.92 billion. Between March 24 and March 30, the company finalized its Bitcoin purchase at an average price of $86,969 per coin. The company financed this acquisition through recent stock sales, generating $1.22 billion by selling common stock and preferred stock through at-the-market offerings. Strategy maintains a Bitcoin stash of 528,185 coins obtained through various purchases costing $35.63 billion at $67,458 per coin.
This latest move aligns with Strategy’s ongoing commitment to accumulating Bitcoin as a core treasury asset. The firm reported a Bitcoin yield of 11.0% year-to-date, showcasing its strategic focus on cryptocurrency. With current Bitcoin prices hovering around $82,000, Strategy’s holdings carry a market value exceeding $43 billion. The company continues to tap capital markets, including a recent $711.2 million preferred share offering, to fuel its aggressive acquisition plans.
Strategy’s stock, listed as MSTR on Nasdaq, experienced a decline following the announcement. The share price dropped below $300, trading at approximately $280 in pre-market sessions on March 31, marking a 3% decrease. This dip coincides with a broader 3% fall in Bitcoin’s price since the previous Friday’s stock market close. Analysts note that MSTR stock often mirrors Bitcoin’s price movements, amplifying market sensitivity to the cryptocurrency’s volatility.
Bitcoin itself saw significant fluctuations in March, peaking above $94,000 after former President Donald Trump’s Strategic Crypto Reserve proposal on March 6. However, the asset later corrected to $81,780, down 13% from its monthly high, according to CoinMarketCap. Market observers attribute this pullback to profit-taking and mixed economic signals. Strategy’s persistent buying amid these swings underscores its long-term confidence in Bitcoin’s value proposition.
CEO Michael Saylor leads Strategy's Bitcoin acquisition drive and his company demonstrates no plans to decrease its Bitcoin buying activities. Additionally, Strategy implemented a $21 billion equity offering in March to raise billions which it used to increase its cryptocurrency holdings. Strategy retains approximately 2.5% of all Bitcoin's existing supply and thus remains the most prominent public company purchaser of this cryptocurrency. Moreover, the company's strategic move which has triggered discussions about how businesses should use digital currencies in their financial management strategies.
Financial expert Peter Schiff and others express concerns that market condition changes could make Strategy's stock issuance method unsuccessful. However, the firm's approach meets support because its management style represents a groundbreaking method for handling financial reserves.