Strategy (Nasdaq: MSTR), formerly known as MicroStrategy and led by Bitcoin evangelist Michael Saylor, announced on March 31 the acquisition of 22,048 Bitcoin worth $1.92 billion. This significant purchase was executed between March 24 and March 30 at an average price of $86,969 per Bitcoin.
The company funded this massive acquisition through proceeds from various stock offerings, including common MSTR at-the-market (ATM), preferred STRK ATM, and STRF stock offerings. In pre-market trading, MSTR shares were trading at $282, while STRK and STRF stocks were at $84 and $92 respectively.
Strategy Bitcoin Holdings
With this latest purchase, Strategy has substantially expanded its Bitcoin holdings to 528,185 Bitcoin, valued at approximately $35.63 billion. The company’s average acquisition cost now stands at $67,458 per Bitcoin.
Since beginning its Bitcoin acquisition strategy in 2020, Strategy has committed to transforming its balance sheet into a Bitcoin reserve, cementing its position as the world’s largest corporate holder of Bitcoin.
By comparison, MARA Holdings, the world’s largest Bitcoin mining company and second-largest corporate Bitcoin holder, possesses only 46,374 Bitcoin.
However, MARA is working to narrow this gap, having filed an 8-K with the Securities and Exchange Commission (SEC) on March 28. The filing revealed MARA’s partnership with investment firms including Barclays Capital, BMO Capital Markets, and Cantor Fitzgerald & Co. to sell $2 billion worth of common stock priced at $0.0001 per share.
Hedge Against Tariffs Uncertainty
Strategy’s latest Bitcoin acquisition comes amid market uncertainty, with Bitcoin experiencing a weekly decline of over 5% and trading at $82,318.33 according to Kraken’s price feeds.
The cryptocurrency market has been influenced by concerns surrounding President Donald Trump’s April 2 tariff announcement, which is expected to outline reciprocal trade tariffs targeting major US trading partners. This development could potentially increase inflation-related concerns and dampen demand for risk assets like Bitcoin.
Despite market volatility, industry experts remain optimistic. “This sell-off isn’t the end of the bull run — it’s a healthy reset,” noted Andrei Grachev, managing partner of DWF Labs. “Markets overreact to tariffs and macro headlines, but long-term fundamentals haven’t changed.”
Crypto Industry Faces Risks
While Strategy has never sold any of its Bitcoin holdings, the company may face tax implications on its unrealized gains of over $7.7 billion. Under the Inflation Reduction Act of 2022, Strategy could qualify for a 15% “corporate alternative minimum tax” based on an adjusted version of the company’s earnings.
However, there’s speculation that the US Internal Revenue Service might create an exemption for Bitcoin under Trump’s more crypto-friendly administration.
As global trade tensions escalate ahead of the key tariff deadline, Bitcoin and other risk assets have experienced price fluctuations, with Bitcoin dropping as low as $81,350. Despite these short-term challenges, Strategy’s continued investment signals strong institutional confidence in Bitcoin’s long-term value proposition.
