Strategy buys 4,020 BTC bitcoin for $427 million, total holdings reach 580,250 BTC

Strategy (formerly MicroStrategy), a Bitcoin treasury company co-founded by American entrepreneur and investor Michael Saylor, purchased 4,020 bitcoins for about $427.1 million at an average price of $$106,237 per coin last week, according to a press release shared on Monday.

The acquisition raised Strategy’s total holdings to 580,250 BTC, which cost approximately $40.61 billion to buy at an average price of $69,979 per bitcoin, including fees and expenses. The company boasts $22.7 billion in paper gains and controls nearly 3% of bitcoin’s total 21 million supply.

Strategy funded the latest buys using proceeds from selling its class A common stock, MSTR, perpetual strike preferred stock, STRK, and Series A perpetual strife preferred stock, STRF. Between May 19 and May 23, Strategy sold 847,000 MSTR Shares for $348.7 million in net proceeds. Also, Strategy sold 678,970 STRK Shares for $67.9 million and 104,423 STRF Shares for $10.4 million in net proceeds.

Last week, Strategy announced a $2.1 billion ATM offering of its 10% Series A Perpetual Strife Preferred Stock (STRF), in addition to STRK sales in its upsized “42/42” plan to raise $84 billion via equities and convertible notes to accumulate BTC through 2027.

Over the weekend, Saylor hinted at another bitcoin acquisition announcement with an update on Strategy's BTC purchase tracker. "I only buy bitcoin with money I can't afford to lose,” Saylor posted on Sunday.

Strategy portfolio tracker. Image: Saylortracker.com.

Strategy previously took its total holdings to 576,230 BTC after buying an additional 7,390 bitcoin for approximately $765 million at an average price of $103,498 per BTC between May 12 and May 16. Bitcoin accumulation from Strategy has coincided with upward momentum displayed by the leading cryptocurrency. Yet, other market players should consider that profit-taking as BTC continues to set new all-time highs may dull Strategy’s aggressive buying spree, BRN analyst Valentin Fournier told The Block via email.

BTC changed hands for $109,884, up over 6.5% in the past week, according to The Block’s price page. MSTR was down 7% during pre-market trading.

Bernstein predicts $330 billion from Strategy copycats

More institutions have adopted the Strategy’s playbook, establishing bitcoin treasuries in some capacity. Over 70 entities have confirmed BTC on their balance sheets, with companies like Tether-backed Twenty One joining KULR Technology, Metaplanet, and Semler Scientific in the bitcoin accumulation race.

Firms like Nakamoto, founded by Bitcoin Magazine CEO David Bailey, and publicly traded entities like Nasdaq-listed GD Culture Group and Basel Medical Group, and Brazil-based fintech startup Méliuz, also announced plans to create bitcoin treasuries. According to Bernstein analysts, these so-called Strategy copycats could add $330 billion to BTC’s market capitalization in the next five years.