Munzir HakimiTable of Contents
Fresh Insights
strategy’s Bitcoin Acquisition
Strategy has recently acquired 1,045 Bitcoin for $110.2 million, increasing its total holdings to 582,000 BTC. This purchase is part of an ongoing strategy to accumulate Bitcoin as the cryptocurrency approaches its all-time high price.
According to a recent SEC filing, the average price paid for this latest acquisition was approximately $105,426 per coin. The company’s total investment in Bitcoin now stands at around $40.8 billion, with an average cost of about $70,086 per BTC.
Stock Offering Boost
In conjunction with this acquisition, Strategy announced a meaningful stock offering aimed at raising funds for further investments in bitcoin and other corporate expenses. The offering will issue approximately 11.76 million shares of preferred stock priced at $85 each and is expected to generate nearly $979 million after expenses.
This new fundraising initiative offers non-cumulative dividends of 10%, targeting institutional investors looking for yield-generating opportunities.
Corporate Influence
As beginning its accumulation strategy in August 2020, Strategy has inspired numerous companies to follow suit in investing heavily in Bitcoin. Notably,Metaplanet has emerged as Japan’s equivalent of Strategy and recently became one of the largest corporate holders of Bitcoin globally.
Other firms like The Blockchain Group have also reported significant increases in their stock prices following similar strategies focused on accumulating BTC.
Final Thoughts
The trend set by Strategy continues to influence various corporations worldwide as they recognize the potential benefits associated with holding ample amounts of Bitcoin amidst rising market values.
