Institutional Bitcoin Holdings Recap: Strategy Adds 130 BTC, Metaplanet Hits ~3,200 Total

Strategy Launches $500M Stock Offering to Acquire More Bitcoin

Strategy, previously known as MicroStrategy, announced a plan to raise up to $500 million through a new offering of perpetual preferred stock called Strife, priced at $100 per share with a fixed 10% dividend payable in cash, targeting institutional investors. The company recently purchased approximately $10.7 million worth of Bitcoin, increasing its total holdings valued at about $41.4 billion by 0.026%. Despite a challenging market for raising cash, analysts believe Strategy will continue its Bitcoin acquisitions. 

The stock price fell 6.5% to around $275 on the announcement, and shares are down 5.5% year-to-date, though they have doubled in the past six months. Co-founder Michael Saylor indicated that recent economic factors are contributing to a “macro, risk-off zone,” but he anticipates a significant rebound for Bitcoin once conditions improve. The new offering reflects a strategic move to leverage higher dividends for institutional investors while expanding Bitcoin investments.

Strategy Raises $711 Million in Preferred Stock Offering to Bolster Bitcoin Holdings

On March 21, Strategy raised over $711 million through the sale of 8.5 million shares of its Series A Perpetual STRF Preferred Stock, priced at $85 each with a 10% annual dividend. This surpasses its $500 million target by over 40%. Holding over 499,000 BTC valued at over $40 billion, Strategy faces liquidity challenges, with a cash ratio dropping to 0.11 in 2024. While bankruptcy risk is low, Bitwise suggests new cash flow strategies, including lending Bitcoin and using covered call options. Recent FASB changes will allow Strategy to report Bitcoin at fair market value, improving transparency and aligning with its long-term strategy.

Metaplanet Expands Bitcoin Holdings with $12.5 Million Purchase, Totaling 3,200 BTC

Metaplanet, a Tokyo-listed investment firm, has reinforced its cryptocurrency strategy by purchasing an additional 150 Bitcoin for about $12.5 million, averaging $83,508 per Bitcoin, bringing total holdings to 3,200 BTC valued at approximately $265.9 million. Initiating its acquisition strategy in April 2024, the firm targets 10,000 BTC by 2025 and 21,000 BTC by 2026. Despite a 0.49% stock decline to 4,030 yen, Metaplanet boasts a 15.8% year-to-date increase and an 1,819% rise over the past year. The company positions itself as a leader in corporate Bitcoin investment amidst growing institutional interest.