On April 13, Strategy acquired another 3,459 bitcoins worth $285.8 million, which increased its total cryptocurrency portfolio to 531,644 BTC. This is approximately 2.52% of the total volume of bitcoins issued to date. According to the company, total investments in the first cryptocurrency reached $35.92 billion, with the average purchase price being $67,556 per coin.
The main mechanism for financing such acquisitions is the issue of convertible bonds with a minimum or zero interest rate. These securities can then be exchanged for Strategy shares (ticker: MSTR), which gives investors potential benefits when quotes rise. The company uses the funds received in this way to purchase additional volumes of bitcoin.
Such a financial strategy turns out to be profitable in the conditions of the cryptocurrency market growth: it allows to attract capital on comfortable terms without significant costs. However, such a model also carries certain risks - in the event of a sharp and prolonged decline in the Bitcoin rate, the attractiveness of MSTR shares decreases, which may complicate the further placement of bonds.
The company has previously faced the consequences of market instability. Against the backdrop of a global decline in quotes and fears of a recession in the United States, Strategy recorded unrealized losses of $5.91 billion. This indicates a high dependence of the company's strategy on the state of the cryptocurrency market and the general investment climate.
Nevertheless, despite the possible risks, Strategy demonstrates commitment to its long-term policy of Bitcoin accumulation and continues to follow the previously chosen course.