Company Aims to Raise $42 Billion for Further Purchases by 2027
Strategy (MSTR), formerly known as MicroStrategy Inc., has continued its aggressive Bitcoin accumulation, purchasing $742.2 million worth of the digital asset over the past week. The Virginia-based enterprise software firm, which has rebranded itself as a Bitcoin Treasury company, resumed its weekly acquisitions that started in late October.
According to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, Strategy acquired 7,633 Bitcoin at an average price of $97,255 between Feb. 3 and Feb. 9. With this latest purchase, the company now holds approximately $47 billion worth of Bitcoin, accounting for more than 2.5% of the total supply that will ever exist.
Strategy’s ambitious Bitcoin strategy is fueled by its plan to raise $42 billion in capital by 2027 through at-the-market stock sales and fixed-income securities. The company has already reached nearly half of this goal. Co-founder and Chairman Michael Saylor has ramped up fundraising efforts since the election of President Donald Trump, leveraging various capital market strategies to finance Bitcoin purchases.
Hedge funds have played a role in the company’s growth, using Strategy’s convertible bonds for arbitrage strategies. By purchasing these bonds and short-selling the company’s stock, investors are betting on the stock’s volatility.
“We will continue to pursue intelligent leverage via our convertible bond strategies, via our preferred stock strategies, via opportunistic capital markets strategies in order to generate that leverage and that performance for the Bitcoin maxi investors,” Saylor stated in a call with analysts last week.
Despite its bullish stance on Bitcoin, Strategy reported a $670.8 million net loss for the fourth quarter, largely due to a $1 billion impairment charge on its Bitcoin holdings. However, the company is expected to return to profitability in the current quarter as new accounting guidelines will reflect fair value changes in its Bitcoin holdings directly on its income statement.
While Strategy’s stock has declined for three consecutive weeks, it remains up 13% year-to-date. As the company continues to aggressively acquire Bitcoin, investors and analysts will be closely watching its financial performance and ability to manage volatility in the crypto market.
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