Strategy Expands Bitcoin Holdings with a $2 Billion Acquisition, Nearing 500,000 BTC

Strategy Expands Bitcoin Holdings with a $2 Billion Acquisition, Nearing 500,000 BTC

Strategy, formerly known as MicroStrategy, has further solidified its position as the world’s largest corporate Bitcoin holder by acquiring an additional 20,356 BTC for approximately $1.99 billion. This latest purchase, made at an average price of $97,514 per Bitcoin, brings the firm’s total holdings to an impressive 499,096 BTC, accumulated at a total cost of $33.1 billion and an average price of $66,357 per coin.

Michael Saylor, the company’s co-founder and chairman, announced the acquisition on Feb. 24 via X (formerly Twitter). The move follows Strategy’s successful $2 billion senior convertible note offering, which was specifically intended to finance further Bitcoin purchases.

Convertible Notes Offering: Zero Interest and High Premium

The recently issued notes, set to mature on March 1, 2030, carry a 0% coupon rate. Each $1,000 note is convertible into 2.3072 shares of Strategy’s Class A common stock at a price of $433.43 per share—a 35% premium over the company’s current market value.

After deducting fees and estimated expenses, the offering generated approximately $1.99 billion in net proceeds. According to the firm’s official statement, the funds will be allocated toward “general corporate purposes, including the acquisition of Bitcoin and working capital.”

Part of the 21/21 Plan: Aiming for $42 Billion in Capital

The $2 billion note issuance is a component of Strategy’s broader “21/21 Plan,” an ambitious initiative aiming to raise $42 billion over the next three years through a combination of equity and fixed-income securities. The company has already secured $20 billion toward this goal, primarily through convertible notes and other debt instruments, fueling its aggressive Bitcoin accumulation strategy.

Unrealized Profits Reach $14.8 Billion Despite Q4 Loss

Despite reporting a $670 million net loss in Q4 2024, Strategy remains committed to its long-term Bitcoin investment plan. With nearly 500,000 BTC in its reserves, the firm now holds an unrealized profit exceeding $14.8 billion, according to data from SaylorTracker.

Additionally, as of late 2024, state pension funds and treasuries from 12 North American states collectively held $330 million worth of Strategy stock, according to a Cointelegraph report on Feb. 17.

Following its rebranding to Strategy on Feb. 5, the company has also gained increased institutional support. BlackRock, the world’s largest asset manager, recently raised its stake in Strategy to 5%, further solidifying the firm’s standing in both the crypto and traditional financial markets.

With a clear focus on expanding its Bitcoin reserves, Strategy continues to set the standard for corporate Bitcoin adoption, reinforcing its bullish stance on the digital asset.