Strategy Acquires Additional 20,356 Bitcoins for $2 Billion

Updated: February 24, 2025, 8:30 AM EST

In a significant move for the cryptocurrency space, bitcoin treasury company Strategy, formerly known as MicroStrategy, has acquired 20,356 bitcoins valued at approximately $1.99 billion. This acquisition, made between February 18 and February 23, comes at an average price of $97,514 per bitcoin. The details were disclosed in an 8-K filing with the Securities and Exchange Commission (SEC) on Monday morning.

Portfolio Expansion

With this latest purchase, Strategy’s total bitcoin holdings now stand at 499,096 BTC, equivalent to over $47 billion in market value. Notably, these bitcoins were acquired at an average cost of $66,357 each, accumulating a total expenditure of around $33.1 billion including fees and expenses. Remarkably, this positions Strategy as holding more than 2.3% of the entire bitcoin supply capped at 21 million.

This latest acquisition marks Strategy’s fifth-largest purchase of bitcoins to date, as indicated by a tracking tool used by the company. The recent acquisitions followed the completion of a $2 billion zero-coupon convertible note offering, also announced earlier on Monday. This offering allows initial purchasers the option to buy up to an additional $300 million in notes, aimed at financing the company’s ambitious cryptocurrency strategy.

Warning Signals and Market Sentiment

Despite this aggressive acquisition strategy, the company has flagged potential risks associated with its bitcoin holdings. In its annual report released on Tuesday, Strategy cautioned that significant declines in bitcoin’s market value could negatively impact profitability, particularly given that its enterprise analytics software division did not generate positive cash flow in 2024. This raises concerns over potential increased tax liabilities which may arise from unrealized gains in bitcoin valuation.

Although there were no bitcoin purchases in the preceding week, Strategy has recently resumed its acquisition streak after pausing during the Q4 earnings release earlier this month.

Market Analysis and Institutional Interest

Even amidst turbulent market conditions, Strategy’s market capitalization remains impressive at $77.4 billion, despite trading at a premium to its net asset value (NAV). There are mixed sentiments among investors regarding the valuation of the company, particularly its debt-funded bitcoin acquisition strategy. However, analysts maintain optimism about Strategy’s approach, with Canaccord Genuity’s analyst Joseph Vafi expressing confidence in the company’s systematic acquisition pace.

Investment banking firm Keefe, Bruyette & Woods has predicted that Strategy’s inclusion in the S&P 500 index could soon occur, further amplifying institutional interest in the company’s operations. Notably, asset management giant BlackRock recently increased its stake in Strategy from 4.09% to 5%, showcasing growing institutional involvement.

In addition, the California State Teachers Retirement System (CalSTRS) has reported $83 million in holdings of Strategy’s class A common stock, signaling further institutional support for the company amidst its evolving financial landscape.

Stock Performance

Shares of Strategy have experienced volatility, closing down 7.5% on Friday at $299.69. Nonetheless, the company’s stock performance has been remarkable over the past year, reflecting an increase of more than 338%. Currently, Strategy shares are experiencing a slight rise in pre-market trading, indicating ongoing interest from the market.

As the company approaches the milestone of 500,000 bitcoins in its treasury, the financial community watches closely to assess the implications of its aggressive bitcoin acquisition strategy and its impact on broader market trends.

Author’s Note: This article is provided for informational purposes only and should not be construed as financial advice. Individuals are encouraged to conduct their own research and consult with financial advisors before making investment decisions.