Investment company adds $180M more to its Bitcoin holdings, now totaling 555450 BTC
Strategy, previously known as MicroStrategy, has recently made another significant purchase of Bitcoin, continuing its proactive approach to accumulate the digital asset. Executive Chairman Michael Saylor revealed on May 5 that the company had acquired an additional 1,895 BTC for $180.3 million in cash, increasing its total Bitcoin holdings to 555,450 bitcoins.
The purchase was made at an average price of $95,010 per bitcoin, as disclosed in the company’s regulatory filing. This transaction has elevated Strategy’s entire Bitcoin treasury to over $52 billion, firmly establishing its position as the largest corporate Bitcoin holder globally.
In terms of the current Bitcoin market, the cryptocurrency is trading at $94,170 as of Monday, showcasing a slight retreat from recent highs surpassing $97,000. Bitcoin has seen a remarkable surge of more than 120% year-to-date, driven by institutional investments, ETF demand, and a growing consensus on Bitcoin’s role as a digital version of gold.
Michael Saylor has consistently emphasized that Bitcoin serves as the company’s primary reserve asset, often describing it as “digital property superior to gold.” To finance its continuous Bitcoin acquisitions, Strategy has utilized convertible notes and shares offerings successfully. Since commencing its purchasing spree in August 2020, Bitcoin has become a central element in the company’s identity.
In alignment with broader institutional trends, Strategy’s recent acquisition mirrors heightened institutional interest in Bitcoin. Notably, spot Bitcoin ETFs have accumulated nearly six times more BTC than the output from mining operations in the past week. Esteemed entities such as BlackRock and Fidelity are witnessing significant capital inflows into their Bitcoin products. The rising demand for ETFs has led to a depletion of available supply on exchanges, bolstering the bullish sentiment for Bitcoin.
Many market analysts remain positive about the future trajectory of Bitcoin despite recent price oscillations. JPMorgan’s prediction suggests that Bitcoin could reach $135,000 by the end of 2025. Meanwhile, more aggressive models like PlanB’s Stock-to-Flow model propose potential price peaks near $700,000 under favorable macroeconomic circumstances. A widely anticipated new all-time high above $100,000 is expected in the upcoming market phase, contingent on surpassing resistance levels around $98,000 to $100,000.
In conclusion, Strategy’s strategic approach to accumulating Bitcoin showcases a conviction in the long-term potential of the digital asset. With a steadfast commitment to Bitcoin as a primary treasury reserve, the company’s continued acquisitions signal confidence in Bitcoin’s role as a prominent component of its financial strategy.
