After the stock sale, Strategy has over 500,000 bitcoins

The bitcoin fund of Strategy, formerly known as MicroStrategy, recently surpassed 500,000 bitcoins following its latest stock sale, the company announced on Monday. After acquiring 6,911 bitcoins last week, the Virginia-based firm stated that it now holds 506,137 bitcoins valued at $44.2 billion, according to a press release. The company reported that it purchased bitcoin at an average price of $84,500 per coin, slightly higher than the average price of $83,000 that Strategy paid for 130 bitcoins a week prior.

Meanwhile, Strategy indicated that it sold nearly two million Class A shares, a move that resulted in approximately $593 million in net revenue for the company. The stock sale was linked to a market offering program introduced in October, which authorized Strategy to sell up to $21 billion in common stock. On Monday, the company stated that it can still sell an additional $3.57 billion of Strategy’s shares through the program. Separately, Strategy, which shifted its focus from software to bitcoin in 2020, reported that it raised $1.1 million from the sale of preferred shares. The product listed on Nasdaq, named Strike (STRK), was introduced in January and has a cumulative dividend of 8 percent payable in cash or regular Class A shares.

The price of Strategy’s stock fell to $311.36 yesterday when U.S. markets opened, according to Nasdaq. However, the company’s shares quickly recovered and ended the day up. The price of STRK, which began trading on January 31, rose by 1.1 percent to $86.50. Its price peaked at around $99 last month but began to decline during the past month. Co-founder and Executive Chairman of Strategy, Michael Saylor, hinted at the latest round of bitcoin purchases. A chart tracking the company’s bitcoin purchases with orange dots ‘needs more orange,’ he wrote on X on Sunday.

Strategy spent $19.3 billion buying bitcoin last year, using convertible debt and other financial products to acquire more bitcoins than it otherwise could, according to the Saylor Tracker. As the price of bitcoin fell amid Trump’s trade war and economic uncertainty, analysts say it has become more challenging for Strategy to raise funds cheaply. However, on Monday, the company indicated that it still spent $5.3 billion on bitcoin in the first quarter of this year.