- Strategy added 353 Bitcoin, valued at $43 million, to its portfolio over the last seven days, bringing its haul to 818,869 BTC.
- CEO Phong Le highlighted the strong demand for their company’s enterprise software solutions.
Strategy (formerly MicroStrategy) has strengthened its Bitcoin (BTC) balance sheet with another multi-million-dollar acquisition in the last seven days. Phong Le, the company’s CEO, reminded people that there’s more to their business than just accumulating the premier crypto asset.
Strategy’s Updated Bitcoin Holdings
On Monday, Strategy disclosed in an 8-K filing with the US Securities and Exchange Commission (SEC) that it purchased 353 BTC between May 4 and 10. The assets cost a total of $43 million at an average purchase price of $80,340 per BTC.
The move increases the company’s holdings to 818,869 BTC, accounting for 4.08% of Bitcoin’s 20.02 million circulating supply or 3.89% of its 21 million max supply. So far, Strategy has already allocated $61.86 billion for its BTC treasury model, translating to an average cost of $75,540 per BTC.
The institution secured funding for its latest Bitcoin acquisition from proceeds of around $100,000 from the Variable Rate Series A Perpetual Stretch (STRC) Preferred Stock offering and $42.9 million from the Class A Common Stock (MSTR) offering.
Strategy’s Bitcoin treasury is reinforced by a cash reserve of approximately $2.25 million. The funds can provide up to 18.1 months of dividend coverage for investors in the event of market turbulence. Meanwhile, the value of its BTC holdings can settle its dividend obligations in up to 44.7 years.
Criticisms on Strategy’s Announcement to Sell BTC
Critics had a field day last week when Michael Saylor, Executive Chair of Strategy, flipped the script of his “never selling Bitcoin” narrative. He confirmed Le’s comment that selling BTC is not out of their consideration if it’s necessary to meet their financial obligations with investors.
Saylor admitted that many people believe the decision will negatively impact their company or the broader crypto market. However, he argued that buying Bitcoin with credit and selling it when prices appreciate would allow Strategy to buy more Bitcoin while paying dividends, especially during favorable market conditions.
Despite its BTC acquisitions mostly making the news, including Saylor’s statements, Le reminded the public that there’s more to Strategy’s business than Bitcoin. The company’s CEO highlighted that their enterprise software business remains a vital part of their long-term plans.
Le emphasized that Strategy’s original enterprise software business continues to grow, with now over 3,000 customers and 500,000 active users. These comprise leading banks, healthcare companies, retailers, government agencies, and Fortune 500 companies.
The CEO noted that the software side of Strategy’s business strengthens its portfolio and sets it apart from other digital asset treasury (DAT) companies.
