Strategy, the Nasdaq-listed business intelligence firm formerly known as MicroStrategy, has announced it further deepened its commitment to the flagship cryptocurrency Bitcoin (BTC), pouring an additional $1.99 billion into the cryptocurrency to acquire an additional 20,356 coins.
The company, which over time has become synonymous with cryptocurrency investment, bought the tokens at an average price of $97,514 per BTC and has now recorded a bitcoin yield of 6.9% so far this year, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
This latest acquisition, funded through the proceeds of a $2 billion convertible notes offering completed just days prior, brings Strategy’s total BTC holdings to a staggering 499,096, valued at approximately $33.1 billion and acquired at an average cost of $66,357 per coin. The company’s unwavering embrace of Bitcoin as a primary treasury reserve strategy has fueled both investor enthusiasm and scrutiny in equal measure.
The convertible notes offering, finalized on February 21, generated significant investor interest, raising $2 billion with an option for purchasers to acquire an additional $300 million. The notes carry a 35% conversion premium based on Strategy’s Class A common stock price, potentially diluting existing shares upon conversion.
Strategy’s Stock Market Returns
Strategy’s stock has largely mirrored the volatile nature of the cryptocurrency market, with a beta of 3.26, indicating significantly higher volatility than the broader equities market. Despite this, the stock has delivered a remarkable 335 % return over the past year, and currently boasts a market capitalization of $74 billion, according to data from Google Finance.
The company, it’s worth noting, first started buying BTC back in August 2020 and has since been issuing debt and equity offerings to finance additional cryptocurrency purchases. Its first BTC buy was for 21,454 BTC at an average price of around $11,600.
