Strategy (MSTR) continues to buy Bitcoin (BTC) at a relentless pace.
The software company turned serial Bitcoin acquirer has bought up even more Bitcoin in recent days and exhausted its 2024 at-the-market common stock offering in the process. The company, led by Chairman Michael Saylor and formerly known as MicroStrategy, purchased 1,895 Bitcoins at a cost of $180.3 million, or around $95,167 each between April 28 and May 4.
Strategy disclosed its latest acquisitions in a form filed with the U.S. Securities and Exchange Commission (SEC). The latest purchase brought the company’s total holdings to 555,450 Bitcoins purchased at a total cost of $38.08 billion, or around $68,550 per BTC. Strategy is the largest corporate owner of Bitcoin in the world.
Capital Raise
The company said its latest purchases of Bitcoin marked the end of its common equity at-the-market stock offering, an initial $21 billion program established last October. Strategy frequently sells equity, debt, and preferred stock to raise capital to fund its Bitcoin purchases.
The company said it is now seeking to raise an additional $21 billion to fund future BTC purchases. Specifically, the company is preparing a new common stock sale. Called its “42/42 Plan,” Strategy aims to secure a total of $84 billion of capital over the next two years to support its BTC acquisitions.
The new plan arrives six months after Strategy introduced its “21/21 Plan” that had the goal of raising $21 billion through equity offerings and another $21 billion through fixed-income securities. MSTR stock has risen 32% this year.
Is MSTR Stock a Buy?
The stock of Strategy has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 12 Buy and one Sell recommendations assigned in the last three months. The average MSTR price target of $499.85 implies 30.47% upside from current levels.
