Crypto

Strategy Infuses $1.34 Billion Into Its Crypto Reserves

Strategic Bitcoin Acquisitions: A Comprehensive Overview

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Ambitious Bitcoin Acquisition Strategy

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Strategy has continued its assertive approach towards acquiring Bitcoin. Michael Saylor, a key executive, announced that the company recently acquired 13,390 BTC at approximately $1.34 billion, averaging $99,856 per Bitcoin. This acquisition boosts their holdings to an impressive 568,840 BTC, representing about 2.7% of the Bitcoin market cap, capped at 21 million coins.

Significant Acquisition Near the $100K Mark

Recent reports indicate that Strategy’s latest Bitcoin purchase was just shy of the $100,000 benchmark per coin, amounting to a $1.34 billion expenditure. This isn’t their first major acquisition in 2025. Earlier on May 5, they acquired 1,895 BTC at $95,167 each, and on April 28, they obtained 15,355 BTC at $92,737 per coin. These acquisitions across varying price points consistently capture attention due to their proximity to the $100K range.

Rising Average Acquisition Costs

The average cost for Strategy’s Bitcoin holdings has increased from $68,550 to $69,287 per coin. This is significant as a higher cost basis necessitates larger price movements for profitability. Gold advocate Peter Schiff cautioned that further acquisitions could push the average cost beyond $70,000, implying potential real losses if Bitcoin’s price falls below this threshold.

Michael Saylor tweeted on May 12, 2025, stating, “Strategy has acquired 13,390 BTC for ~$1.34 billion at ~$99,856 per Bitcoin and has achieved a Bitcoin yield of 15.5% YTD 2025. As of 5/11/2025, we hold 568,840 BTC acquired for ~$39.41 billion at ~$69,287 per Bitcoin.”

Swift Returns on Recent Investments

Strategy reports a 15.5% yield on Bitcoin for the year, essentially reflecting the gain between the current market price and their acquisition cost. For instance, the May 5 purchase has already yielded approximately $16.8 million within six days, translating to a 9.32% gain. Similarly, the acquisition made on April 28 shows a profit of roughly $177.1 million, or 12.47%. Even the smaller purchase on April 14 of 3,459 BTC at $82,618 per coin has accrued a profit of $74 million, or 25.88%. Currently, Bitcoin trades at $102,889.

Risks Involving Debt and Market Influence

Strategy’s acquisitions are not entirely cash-based; they involve a blend of debt and equity, heightening the risk if Bitcoin prices decline. The company has invested approximately $39.41 billion at an average of $69,287 per Bitcoin. With the current price near $104,000, their holdings are valued at about $59.2 billion, reflecting nearly $19.8 billion in unrealized profits. However, these gains are vulnerable to market fluctuations.

Strategy’s ongoing acquisitions reduce the number of available coins in the market. This reduction can potentially tighten supply and stabilize prices, according to some analysts. However, others warn that the true challenge will arise if market demand wanes, prompting sales from even major stakeholders like Strategy.

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Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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