Strategy Acquires 130 BTC for $10.7 Million, Avoids Shareholder Dilution

Strategy, the business intelligence firm formerly known as microstrategy, has made its smallest Bitcoin purchase to date, acquiring 130 BTC for approximately $10.7 million. This acquisition, which took place between March 10 and March 16, was funded through the sale of 123,000 shares of its 8.00% Series A perpetual strike preferred stock, generating around $10.7 million in net proceeds. This move is significant as it avoids the dilution of existing shareholders' voting power, which would have occurred if the company had issued more Class A common stock.

This latest purchase brings Strategy's total Bitcoin holdings to 499,226 BTC, valued at over $41 billion at current prices. The company has acquired its entire Bitcoin stash for approximately $33.1 billion at an average price of $66,360 per BTC, including fees and expenses. This means Strategy now controls more than 2% of Bitcoin’s fixed 21 million supply, making it one of the largest corporate holders of the cryptocurrency.

Strategy's decision to fund the purchase through preferred stock sales rather than issuing new Class A common stock is a strategic move. Preferred stock functions more like bonds, paying an 8% yield to investors, and does not dilute the voting power of existing shareholders. This approach aligns with Michael Saylor's long-term vision of leveraging Bitcoin as a store of value and a hedge against inflation. Saylor, the co-founder and executive chairman of Strategy, has been a vocal advocate for Bitcoin and has previously suggested that the United States should acquire 25% of the supply to generate wealth and eliminate the national debt.

Ask Aime: How does Strategy's latest Bitcoin acquisition affect the company's market valuation and competitive position in the blockchain industry?

Despite the relatively small size of this purchase compared to previous acquisitions, it underscores the company's continued belief in Bitcoin's potential. The purchase was made at a time when Bitcoin was showing weakness below $80,000, which could be seen as a strategic move to accumulate more Bitcoin at a lower price point. This acquisition is part of a broader strategy to increase its holdings and solidify its position as one of the largest corporate holders of Bitcoin. By funding the purchase through preferred stock sales, Strategy has demonstrated its ability to raise capital without diluting the voting power of its existing shareholders. This approach not only supports the company's financial health but also reinforces its commitment to Bitcoin as a key component of its investment strategy.

Strategy's latest Bitcoin acquisition is a testament to its unwavering commitment to the cryptocurrency. The company has remodeled itself into a Bitcoin development company and pioneered the crypto treasury reserve asset model that other publicly traded companies have emulated. Saylor has previously stated that he has no plans of halting BTC purchases, suggesting he would be “buying the top forever”. This latest acquisition is a clear indication of Strategy's continued dedication to Bitcoin and its belief in its long-term potential as a store of value and a hedge against inflation.