- Despite significant Bitcoin acquisitions, Strategy’s stock (MSTR) dipped 2%% on Monday trading to $383 but remains up 36% year-to-date.
- The company’s BTC-centric strategy has driven its stock value to outperform other financial assets with a 210% gain in the past 12 months.
Strategy, the enterprise previously known as MicroStrategy and still led by Bitcoin advocate Michael Saylor, has added to its extensive BTC portfolio with a new investment. According to the latest announcement, the company spent around $180.3 million on acquiring 1,895 BTC. Compared against the average cost for this latest batch of BTC, it came out to $95,167 per each.
Strategy Acquires Additional Bitcoin
Strategy’s haul currently exceeds 555,450 BTC, with this being the latest purchase. The company says the total investment in Bitcoin is $38.08 billion. According to these purchases, the average acquisition price is $68,550 per BTC.
The company has been acquiring Bitcoin at a spectacular rate, usually completing transactions on a weekly basis, as reported in our previous story. Just last week, the firm justified headlines after it spent a single move to buy 15,355 BTC at a combined value of nearly $1.42 billion. It has been one of the largest deals the company has made so far this year.
Despite aggressive Bitcoin accumulation, Strategy’s stock, traded on the Nasdaq under the ticker MSTR, showed a downward trend during Monday’s trading session. There’s currently a decline of almost 2% with shares selling around $383. However, considering a wider picture, the stock has advanced by more than 36% since the beginning of the year.
Since its BTC-focused strategy began in 2020, MSTR has had the highest returns compared to other major financial assets, its value rose 210 per cent in the past twelve months. Whilst, the crypto market sentiment now seems to be influenced by the company’s BTC approach.
What Does It Mean for BTC?
Brokersley firm Bernstein analysts argue that Strategy’s model could be what reignites a bigger pattern, with different public companies dedicating as much as $205 billion in capital to Bitcoin reserves. However, smaller firms with limited organic growth opportunities, particularly with a lot of cash balances, would be most likely to initiate this move.
Bernstein also extended its projections to Strategy’s own plans. In order to purchase more Bitcoin, the firm outlined a capital raising roadmap which predicts raising $84 billion by 2027, as highlighted in our previous report. Strategy has already raised around 32% of this funding in the first half of the year, according to Bernstein. Under favorable lighting, Strategy foresaw that another $124 billion in Bitcoin could be funneled through Strategy.
In their view, BTC investment could act as an alternative to traditional means of value creation for companies without a clear growth road ahead. After Strategy shows its validity, such firms can imitate the Bitcoin treasury approach to draw in investors and to earn long-term return.
