Strategy Goes Full Crypto: MicroStrategy Drops Stock for Bitcoin
Acquisition Gains 1,895 Bitcoins, Amassing a Total of 555,450 BTC Valued at $52 Billion
Here's a quick rundown of what's been happening with Strategy (formerly MicroStrategy):
- Strategy bought an additional 1,895 Bitcoin for $180.3M, using funds raised from stock and STRK sales
- The company now holds a whopping 555,450 BTC, worth over $52B with an average cost of $68,550 per BTC
- Strategy has reported a $14B unrealized gain (14% ROI) and is aiming for a 25% ROI by 2025
- After using up its initial $21B ATM offering, Strategy has launched a new one at $21B
- Bitcoin is currently trading around $94K, with strong technical indicators supporting a bullish outlook
** Securities and Exchange Commission (SEC) filing on May 5, 2025** reveals that Strategy has been busy snagging more Bitcoin between April 28 and May 4, paying an average price of $95,167 per Bitcoin.
The company funded its Bitcoin acquisition through strategic financial moves. It raised $128.5M from selling common shares and $51.8M from STRK preferred shares – both part of Strategy's at-the-market (ATM) stock offering plan.
After fully utilizing its previous ATM offering, Strategy swiftly launched a new $21B ATM offering, demonstrating its commitment to its Bitcoin acquisition strategy.
Now, Strategy is sitting on a gargantuan 555,450 Bitcoin, representing nearly 3% of Bitcoin's maximum supply. The company has invested a total of $38.08B in Bitcoin so far, landing an average cost per Bitcoin of $68,550. At current market prices, Strategy's Bitcoin reserves are worth over $52B.
Funding Strategy's Bitcoin Pursuit
Strategy's Bitcoin strategy relies heavily on equity financing. The company is dedicated to growing its Bitcoin reserves by adopting a blend of stock and bond offerings.
In a recent move, Strategy announced plans to double its capital-raising capacity. This includes the new $21B ATM offering and increasing its debt purchase program to $42B.
During Strategy's latest earnings call, it unveiled the "42/42 Plan," which aims to raise $84B in capital over the next two years – split equally between equity and fixed-income instruments. All funds are earmarked for future Bitcoin acquisitions.
This latest Bitcoin purchase adds to the 15,355 BTC Strategy bought in a prior transaction for $1.42B. Strategy's consistent buying pace has seen it add to its position weekly.
Market Performance and Forecast
Strategy's Bitcoin holdings have generated an unrealized gain of approximately $14B, translating to a 14% return on investment for 2025. However, Strategy aims to achieve a 25% return and $15B from its Bitcoin exposure this year.
Michael Saylor, co-founder and Executive Chairman of Strategy, remains optimistic about Bitcoin's role in the company's financial strategy. Despite Strategy's shares being down 2.7% in pre-market trading on Monday, investor sentiment toward the company's Bitcoin-focused approach remains largely positive.
Bitcoin itself is currently trading at around $94,596, representing a slight decrease of 0.2% in the 24-hour time frame, but gains of up to 13% in the monthly period.
Technical indicators continue to support a bullish outlook for Bitcoin. The RSI stands at 59.84, indicating moderate strength without being overbought. The MACD line remains above the signal line with a positive histogram, suggesting ongoing bullish momentum.
Strategy maintains a Bitcoin dashboard on its official website, offering transparency into the size and value of its Bitcoin portfolio.
- Strategy's recent SEC filing indicates that it purchased more Bitcoin between April 28 and May 4, paying an average price of $95,167 per Bitcoin.
- The company primarily funds its Bitcoin acquisition strategy through equity financing, including selling common shares and STRK preferred shares from its at-the-market (ATM) stock offering plan.
- Strategy has shown its commitment to this strategy by swiftly launching a new $21B ATM offering after fully utilizing its initial one.
- With a current Bitcoin price of around $94K, Strategy's Bitcoin reserves, totaling 555,450 BTC, are worth over $52B.
- Strategy's unrealized gain from its Bitcoin holdings stands at approximately $14B, aiming for a total $15B from its Bitcoin exposure by the end of the year, a potential 25% return on investment.
