Strategy Inc Purchases $357 Million in Bitcoin, Increases Total Holdings to $70 Billion

Strategy Inc (NASDAQ:MSTR) is one of the 10 Most Promising Technology Stocks to Invest In. On August 25, Strategy Inc (NASDAQ:MSTR) reported that it purchased $357 million in Bitcoin last week.

Strategy bought the Bitcoins by selling the common stock for the first time in nearly a month. With the latest purchase, the company now holds a total of 632,457 Bitcoins, worth approximately $70 billion at the current market price. The Tysons Corner, a Virginia-based firm, issued $310 million worth of MSTR shares to fund this latest purchase.

The acquisition was also partly funded by its SRTK, STRF, and STRD offerings. The company raised nearly $47 million by selling the preferred stocks, which carry various obligations and dividend payments.

About a week ago, Strategy signaled that it is modifying its newly adopted equity issuance policy, which restricted its ability to issue common stock shares when its stock traded at a certain valuation. Monness analyst Gus Gala mentioned that the company’s funding model creates several risks for shareholders. Under its 42/42 Capital Plan, Strategy has relied on convertible debt and new bond deals, said Gala.

Strategy Inc (NASDAQ:MSTR), previously known as MicroStrategy Inc., is a Bitcoin treasury and business intelligence company. The company offers cloud-native, AI-powered enterprise analytics software to global customers.

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Disclosure: None. This article is originally published at Insider Monkey.