Strategy nears 500K Bitcoin after $2B purchase

Strategy, formerly known as MicroStrategy, has shored up its position as a leading Bitcoin (CRYPTO:BTC) holder, acquiring 20,356 more BTC for approximately $1.99 billion.

The purchase, executed at an average price of $97,514 per Bitcoin, increases Strategy's total holdings to 499,096 BTC.

The company funded this acquisition through a recent zero-coupon convertible note offering.

The notes, maturing on March 1, 2030, allow holders to convert each $1,000 block into 2.3072 shares of Strategy's Class A common stock at $433.43 per share.

According to Strategy, the note sale generated net proceeds of about $1.99 billion after deducting fees.

The company plans to use these funds for general corporate purposes, including further Bitcoin acquisitions.

Michael Saylor, Strategy's Executive Chairman, announced the purchase on X, noting that the company's total investment in Bitcoin stands at $33.1 billion, with an average purchase price of $66,357 per BTC.

Strategy's aggressive accumulation strategy has drawn both attention and scepticism.

While the company's stock (MSTR) is up over 300% in the past year, it has experienced some recent declines.

As of February 24, 2025, MSTR shares were down approximately 4% in late trading, and Bitcoin was trading around $95,000, below its recent high of $109,000.

This latest purchase is part of Strategy’s "21/21 Plan," which aims to raise $42 billion over three years through a mix of equity and debt offerings to further expand its Bitcoin holdings.

Strategy reports that it has already raised $20 billion towards this goal.

Despite a net loss of $670 million in the fourth quarter of 2024, the company remains committed to its Bitcoin strategy.

With its current holdings, Strategy has an unrealised profit of over $14.8 billion.

Institutions are also taking note, with BlackRock increasing its stake in Strategy to 5% following the company's rebrand.

As of the end of 2024, twelve states in North America reported holding Strategy stock in their state pension funds or treasuries, totaling $330 million.

At the time of reporting, the Bitcoin (BTC) price was $91,978.91.