Strategy Buys Another Half A Billion Dollars Worth Of Bitcoin

• Strategy revealed its latest purchase of 6,556 Bitcoin worth over half a billion dollars.
• The company now controls 538,200 BTC, comprising over 2.56% of Bitcoin’s 21 million supply cap.

Strategy (formerly MicroStrategy) announced another explosive Bitcoin (BTC) acquisition today. According to the company, it acquired 6,556 BTC between April 14 and 20 for $555.8 million. It came with an average price of $84,785 per BTC.

Strategy’s New Bitcoin Purchase

The latest developments elevate the technology and Bitcoin development firm’s haul to a total of 538,200 BTC. So far, it has already spent $36.47 for its Bitcoin reserve strategy at an average cost of $67,766 per BTC.

As of 12:00 noon UTC on Monday, Bitcoin has recovered within the $87,300 range. This means Strategy’s BTC reserve is currently worth around $46.985 billion, translating to approximately $10.515 billion in unrealized gains in its investment.

Strategy sourced its series of BTC purchases last week from the proceeds of its Common ATM and STRK ATM offerings. It notably sold 1.755 million MSTR shares for $547.7 million and 91,213 STRK shares for $7.8 million to finance its transactions. This leaves the company with $1.53 billion MSTR Shares and $20.96 billion STRK Shares available for issuance and sale as of April 20.

Michael Saylor, Strategy’s Executive Chairman, said that his company has achieved a BTC yield of 12.1% year-to-date (YTD) following its recent purchase. Meanwhile, it now controls over 2.56% of Bitcoin’s overall supply or 2.71% of the leading cryptocurrency’s circulating supply.

Source: Michael Saylor on X

Strategy’s announcement today occurred right after Saylor’s customary cryptic post on Sunday featuring a screenshot of its Bitcoin portfolio tracker. The company’s executive chair’s post had the caption, “Insufficient Orange.”

Along the way, Saylor expressed his confidence in the digital asset due to its strong fundamentals. He highlighted that lacks counterparty risk, company controlling its blockchain technology, creditors, and competitors. Furthermore, there’s no currency directly influencing it.

Strategy’s Performance

Saylor also boasted that his company’s Bitcoin strategy has led to a Sharpe ratio of 1.59. The figures have outperformed Tesla’s 0.84, Bitcoin’s 0.78, and Apple’s 0.56 ratios.

Source: Michael Saylor via X

The Sharpe ratio is an indicator of risk-adjusted return. It displays how well an investment generates returns in relation to the risk taken. For some, like the pseudonymous Financial Guru, it is an inaccurate metric for evaluating BTC and crypto assets due to their extreme volatility, which can exceed an 80% annualized fluctuation at certain periods. Instead, the analyst recommended using dollar-cost-averaged (DCA) returns to better understand BTC’s performance compared to major indices, such as the S&P 500.

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