Exploring the Strategy that Triumphed Bitcoin with Mind-Boggling 2,115% Share Growth

Key Points

• Strategy, formerly known as MicroStrategy, now holds 500K Bitcoin, equating to 2.4% of the total BTC supply.
• The company still has $15B left for debt issuance and $39B capital to be raised as part of its 21/21 plan.

Strategy, previously MicroStrategy, has become the first public company to hold over 500K Bitcoin (BTC) after a recent acquisition.

On March 24th, Michael Saylor, the founder of Strategy, announced that the company had purchased an additional 6,911 BTC worth $584 million.

Strategy’s Bitcoin Holdings

This latest acquisition brings the company’s total holdings to 506,137 BTC, valued at $43.9B. This represents 2.4% of the entire BTC supply, which is capped at 21 million coins.

In comparison, 492,750 BTC will be mined between now and March 25, 2028. This means that Strategy currently holds more BTC than will be mined in the next three years.

Strategy’s Share Performance

Since adopting an aggressive BTC strategy in 2020, Strategy’s share, MSTR, has seen significant gains. Over the past five years, MSTR has increased by 2,115%, outperforming BTC’s rally of 638% by 3.3 times.

MSTR has also outperformed BTC on a monthly basis, with a rise of nearly 25%, compared to BTC’s 1% increase. This trend continues on a year-to-date basis, with MSTR up 12% and BTC down 8%.

The company’s most recent BTC purchase was funded by a sale of both MSTR and STRK stocks, according to an SEC filing.

The filing stated: “The bitcoin purchases (6,911 BTC) were made using proceeds from the Common ATM and the STRK ATM.”

This indicates that the proceeds from a recent preferred stock sale (STRF) have yet to be deployed. Analyst James Van Straten predicts that the company could acquire an additional 7K BTC in the coming days.

Strategy’s ongoing plan to raise $42B of capital through stock issuance and debt financing for BTC purchases is known as the 21/21 plan. According to analyst Ragnar, $15B worth of debt issuance and $39B of capital are still to be raised under this plan.

On the price chart, MSTR has been fluctuating between the 200DMA (Daily Moving Average) and 100DMA. A recent 41% rally in the past two weeks reached the upper range of the 100DMA. Whether a breakout will occur remains to be seen.