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Michael Saylor’s Strategy, formerly MicroStrategy, has continued its aggressive Bitcoin acquisition strategy by purchasing 1,895 BTC between April 28 and May 4. The company spent approximately $180 million to acquire these bitcoins at an average price of $95,167 per unit. Strategy currently holds 555,450 BTC assets worth $52.4 billion at market value.
The company’s latest purchase is part of its broader strategy to accumulate Bitcoin, having acquired 15,355 BTC just last week for $1.42 billion. Despite the continued acquisition of Bitcoin, Strategy’s stock has shown volatility, dipping nearly 3% in pre-market trading. Nonetheless, the stock remains up 36% year-to-date and has seen a 210% increase over the past year.
Strategy has expanded its efforts to raise capital for further Bitcoin purchases. The company plans to raise up to $84 billion by 2027 through various funding strategies, including equity and debt offerings. Recently, the company raised $52 million by selling perpetual “STRK” preferred stock and $128.5 million from ordinary shares. Additionally, Strategy is working to raise $21 billion more in corporate debt as part of its ambition to acquire additional Bitcoin.
Bernstein's analysis suggests companies with substantial cash reserves can sustain Bitcoin purchases even through market value changes. After Strategy's Bitcoin acquisitions, low-growth businesses will implement cryptocurrency treasury models because they see their advantages. This prediction comes as Bernstein expects approximately $205 billion to be allocated for Bitcoin purchases by corporate treasuries in the next few years.
Despite the stock’s recent dip, analysts are optimistic about Strategy’s future. Bernstein has reiterated its “Outperform” rating for Strategy, setting a price target of $600 per share. The firm also pointed out that Strategy's broader role acted as a proxy for institutional investors who sought exposure to Bitcoin yet remained unaware of how to access it through exchange-traded funds (ETFs). Benchmark Research analysts have similarly raised their price target for Strategy, citing the company’s rapid Bitcoin accumulation strategy as a key factor in their bullish outlook.
Strategies' Bitcoin acquisition strategy drives substantial market acceleration. After implementing its Bitcoin strategy in 2020, the firm established itself as one of the top corporate holders of cryptocurrency, which caused many businesses to consider its actions an industry benchmark. Strategy continues demonstrating unyielding dedication to its Bitcoin plan despite facing first-quarter losses totalling $5.9 billion from Bitcoin market fluctuations.
