Strategy’s Bitcoin Treasury Hits Record $77.4 Billion Valuation
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Strategy, formerly MicroStrategy, has cemented its position as a major institutional holder of Bitcoin, with its crypto holdings soaring to an unprecedented $77.4 billion. This record valuation follows Bitcoin's rebound towards the $120,000 mark. The company's core strategy revolves around continuous and aggressive accumulation of Bitcoin, effectively transforming its balance sheet into a large-scale digital asset investment vehicle.
Key features of this strategy include the sheer scale of its holdings, currently standing at approximately 640,031 BTC, which represents about 3.2% of Bitcoin's circulating supply. Strategy has consistently added to its stash, purchasing an additional 11,085 BTC in the last seven weeks, including a recent buy of 196 BTC. This relentless accumulation means the firm's financial fortunes are tightly linked to Bitcoin's price action, offering significant benefits during bull markets as evidenced by the record valuation. Conversely, it exposes the company to substantial accounting losses during downturns.
The target audience for the impact of this strategy primarily includes Strategy's investors, who weigh the potential for dilution from capital raises against the benefits of increased Bitcoin exposure. To fund its ongoing purchases and corporate needs, the company has employed financing methods such as a recent $21 billion equity offering. The technical specifications of their portfolio—hundreds of thousands of BTC, a significant percentage of total supply, and a multi-billion dollar valuation—underscore the magnitude of this corporate bet on digital assets. This unique approach has effectively made Strategy a proxy for Bitcoin investment in the traditional market.
(Source: https://bitcoinist.com/bitcoin-jumps-to-120k-catapulting-strategys-holdings-to-record-77-4-billion/)
