Shares of Strategy (MSTR), the world’s first and largest Bitcoin (BTC-USD) treasury, surged over 4% after its CEO, Michael Saylor, confirmed another 535 BTC buy. The purchase, made after Saylor hinted at it in an X post, now leaves the company with a whopping 818,869 Bitcoin holdings.
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This aggressive Bitcoin accumulation has transformed Strategy from a mere software company to one of Wall Street’s largest Bitcoin-focused firms.
MSTR Jumps Over 4% After Strategy Resumes Bitcoin Buying
In an X post on May 10, Saylor plainly said, “Back to work. $BTC.” This hinted to many traders that Strategy was about to resume buying BTC after pausing the purchase the previous week. The company halted its regular weekly Bitcoin purchases as it prepared for its Q1 earnings call on May 5.
Notably, Saylor is known for giving a subtle heads-up before he makes his next Bitcoin move. A day after his latest hint on X, Strategy bought 535 Bitcoin for roughly $43 million at an average price of about $80,340 per coin.
He also revealed that the company has achieved a BTC yield of nearly 10% since the start of the year. Meanwhile, the firm’s stock has risen over 4% since the announcement and now trades above $195.
Strategy’s Holdings Climb Above 818,000 BTC
Strategy now holds 818,869 Bitcoin, following its latest purchase. This brings the company’s total Bitcoin purchase cost to roughly $61.86 billion at an average purchase price of around $75,540 per coin.
According to the firm’s holdings tracker, it has made 108 separate Bitcoin buys over 229 weeks. This makes it the largest corporate holder of Bitcoin globally.
Meanwhile, the company’s average buy price is still below the current Bitcoin price. This leaves the firm with unrealized gains worth billions of dollars. Given the magnitude of this loss, many in the crypto community question whether Strategy can pay dividends to its shareholders.
While those concerns are valid, the firm is also seeing gains with each Bitcoin rally. Reports show that the BTC price has recently climbed more than $82,000 for the first time in three months. This is a result of improving market sentiment and reports of a possible U.S.-Iran peace framework. Steady accumulation from institutions like Strategy has also helped keep the Bitcoin price stable.
Is Strategy a Good Buy?
Wall Street analysts rate Strategy (MSTR) a Strong Buy, based on TipRanks consensus data. The stock currently has a projected average price target of $323.92, with 66.58% upside potential. Out of 14 Wall Street analysts, 13 rate this stock a Buy, 1 a Hold, and none a Sell. For more information on this stock’s performance, rating, and price target, visit the TipRanks Stocks Comparison Center.
