Strategy Expands Bitcoin Holdings with $1.92 Billion Purchase

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Strategy has further expanded its Bitcoin holdings with the acquisition of 22,048 BTC for approximately $1.92 billion, the company announced in a press release. The latest purchase was made at an average price of $86,969 per Bitcoin and contributes to a year-to-date (YTD) yield of 11.0% on the company’s Bitcoin investment.

With this latest addition, the business intelligence firm now owns 528,185 BTC, acquired at a total cost of $35.63 billion. The company’s average purchase price per Bitcoin stands at $67,458. Strategy remains the publicly traded company with the largest Bitcoin holdings, reinforcing its long-term commitment to the cryptocurrency market.

Aggressive Accumulation Strategy Continues

The recent acquisition follows Strategy’s purchase of 6,911 BTC for $584 million just a week earlier. The company, led by Executive Chairman Michael Saylor, has consistently expanded its Bitcoin reserves and has raised substantial capital to fund additional purchases.

Earlier in March, Strategy announced plans to generate $21 billion through sales of its perpetual strike preferred stock to finance further Bitcoin acquisitions. Shortly after, the company disclosed plans to raise an additional $722 million to bolster its Bitcoin investment strategy.

Concerns Over Sustainability of Bitcoin Strategy

While Strategy’s aggressive Bitcoin purchases have solidified its position in the cryptocurrency space, critics have raised concerns about the sustainability of its approach. Renowned economist Peter Schiff has repeatedly criticized the company’s investment pattern, warning that it may eventually reach a point where it can no longer raise funds through stock sales or borrowing.

Schiff has suggested that such a scenario could lead to a downturn in both Strategy’s stock and Bitcoin’s price. Despite these concerns, Strategy continues to pursue its Bitcoin accumulation plan, maintaining a significant stake in the digital asset, which now represents approximately 2.5% of Bitcoin’s total supply.

The company’s continued investments underscore its belief in Bitcoin as a store of value, even as market analysts debate the long-term implications of its approach.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.