Disclaimer: The analyst, who wrote this article, owns shares in the strategy.
Strategy (Mstr) adopted a Bitcoin standard five years ago today, August 11, 2020, with its first purchase of 21,454 BTC for $ 250 million. The acquisition marked a historic shift in corporate chain strategy.
At that time, the former AI and Software Development Company had seen its stock price stagnat for two decades after the early 2000-technological boom-and-bust and fell over 95% from its peak.
Since August 2020, however, Mstr has delivered 100% average annual returns composed for over 3,000% cumulative gains, while Bitcoin itself has returned almost 1,000% over the same period.
To finance its BTC accumulation, the company has spent different strategies and raised $ 46 billion via equity and credit, which includes $ 8.2 billion in outstanding convertible debt and four eternal preferred stock offerings, strs, strs, strd and STRC, designed to appeal to different segments in the yield basket.
Fresh buyer continues
The company on Monday morning revealed the purchase of an additional 155 BTC for $ 18 million – a rather small weekly purchase, but nonetheless brought the total Stoack to 628,946 coins worth around $ 76 billion. This representation 3% of Bitcoin’s fixed 21 million supply. With an average cost of about $ 74,000 per BTC sits the company on unrealized winnings of approx. $ 30 billion or 65%.
Mstr is today one of the most actively traded shares that puts $ 4.4 billion in daily trading volume right behind Google (Goog) to $ 4.9 billion. Open interest for Mstr options amounts to $ 90 billion, also second to Google for $ 99 billion. Despite a $ 112 billion market capital compared to Google’s $ 2.4 trillion, the trading activity reflects the intense focus on Mstr.
Its success has inspired a wave of Bitcoin Treasury strategies among other companies. The top 100 public companies now collectively own 964,314 BTC, much of it funded through capital increases that follow the MTR -Playbook.
