Strategy purchases 6,556 BTC for $555.8m

Strategy, led by Michael Saylor, purchased 6,556 bitcoin between April 14 and April 20 for US$555.8 million, at an average price of US$84,785 per bitcoin.

The funds were raised by selling 1.76 million common shares (MSTR) and over 91,000 preferred shares (STRK), generating approximately US$555.5 million.

Strategy now holds 538,200 bitcoin, acquired for a total of US$36.47 billion, with an average acquisition price of US$67,766 per bitcoin.

Bitcoin is currently trading at around US$87,000, valuing Strategy’s holdings at about US$46.8 billion. This reflects an estimated paper profit of US$10 billion.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Corporate treasure hunting: the unprecedented fundraising model

Strategy has pioneered a novel approach to Bitcoin acquisition by raising funds through stock sales rather than using existing cash reserves or debt.

This equity-based fundraising model is distinctive in corporate finance, with Strategy raising $555.5 million by selling shares specifically to purchase more Bitcoin 1.

The scale of this approach is remarkable, with their stock sale programs having a combined capacity of $42 billion, demonstrating institutional confidence in the company’s Bitcoin-focused strategy.

This contrasts with other major corporate Bitcoin holders like Tesla, which invested a portion of existing treasury cash ($1.5 billion) but later sold some holdings citing environmental concerns 1.

Strategy’s approach effectively transforms the company into a publicly-traded Bitcoin fund, enabling traditional equity investors to gain Bitcoin exposure through regulated markets without directly owning cryptocurrency.

This model has created significant shareholder value despite volatility, as Strategy’s stock has outperformed Bitcoin itself over certain periods, suggesting a market premium for this structured exposure to digital assets.

2️⃣ The Bitcoin treasury revolution reshaping corporate finance

Strategy’s massive 538,200 Bitcoin position represents a fundamental shift in corporate treasury management that would have been unthinkable just five years ago.

Their $36.47 billion Bitcoin investment dwarfs the holdings of other public companies, with the second-largest corporate holder, Marathon Digital, maintaining approximately 47,531 BTC, less than 10% of Strategy’s position 1.