Michael Saylor’s Strategy Expands Bitcoin Reserves
In a recent SEC disclosure, billionaire Michael Saylor‘s cryptocurrency investment firm, Strategy, has expanded its Bitcoin reserves by purchasing an additional 487 BTC. The acquisition, which occurred between November 3 and November 9, amounted to nearly $49.9 million, translating to an average buying price of around $102,557 for each Bitcoin, after accounting for all associated fees.
Strategy’s Position as the Largest Corporate Bitcoin Holder
With this latest transaction, Strategy has amassed a staggering total of 641,692 BTC, which collectively cost approximately $47.54 billion, averaging $74,079 per Bitcoin. This positions Strategy as the largest corporate Bitcoin holder in the world, a status the firm has maintained through its persistent investment strategy founded on Saylor’s conviction that Bitcoin is a revolutionary form of digital property.
Funding the Acquisition
To finance this acquisition, the SEC filing indicated that the recent Bitcoin purchase was funded through the proceeds gained by issuing various classes of perpetual preferred stock through Strategy’s at-the-market (ATM) program. During the acquisition window from November 3 to November 9, the firm successfully raised close to $50 million from four different preferred stock offerings which included Series A Strife, Stretch, Strike, and Stride. Notably, no new common stock was issued during this period, signaling Strategy’s reliance on preferred stocks to support its asset accumulation without affecting the ownership stakes of current shareholders.
Commitment to Long-Term Investment Philosophy
Despite the volatile cryptocurrency market, Strategy’s recent Bitcoin procurement underscores its commitment to a long-term investment philosophy. The firm adopts an incremental acquisition model, strategically purchasing smaller amounts during market fluctuations, rather than engaging in speculative trading. Saylor has often referred to Bitcoin as the most efficient means for institutions to safeguard capital, especially in today’s climate of rising inflation and financial uncertainty.
This steadfast commitment to accumulating Bitcoin illustrates Saylor’s dedication to a treasury model centered around digital assets, undeterred by the cyclical nature of cryptocurrency prices.
Current Value and Future Prospects
As of November 9, the value of Strategy’s Bitcoin holdings is over $65 billion at present market rates, solidifying Saylor’s robust position within the digital asset landscape. Additionally, the company maintains over $15.8 billion in Class A common stock that remains available for future issuance, which provides ample opportunity for further Bitcoin investments.
This latest filing reaffirms that Saylor’s ambitions for Strategy closely align with Bitcoin’s potential for long-term value appreciation, reinforcing the firm’s pivotal role in the evolving digital economy.
