Shares of Strategy, the Bitcoin treasury company led by Michael Saylor, climbed 3.6% in premarket trading following the announcement of a significant Bitcoin purchase.
The company disclosed on Monday that it had added 4,020 Bitcoin to its holdings, with an aggregate purchase price of $427.1 million. The acquisition was funded through sales of at-the-market, perpetual strife preferred stock, and perpetual strike preferred stock.
The move comes as Strategy continues to bolster its position in Bitcoin, with the company now holding approximately 580,250 Bitcoin, which were acquired for about $40.6 billion. These holdings are currently valued at over $63.5 billion, highlighting a substantial appreciation in value. The company’s aggressive investment strategy in Bitcoin has been a key driver for its stock performance.
Benchmark analyst Mark Palmer provided insights into the company’s Bitcoin strategy, noting the impressive yield generated from its holdings. "Strategy’s BTC Yield, which represents the change in the ratio of its Bitcoin holdings to its total assumed shares outstanding from period to period, was 16.8% for the period between January 1 and May 25," Palmer stated
. This yield reflects the company’s ability to grow its Bitcoin holdings relative to its share count, which can be an attractive metric for investors assessing the company’s performance in the cryptocurrency space.
The analyst’s positive outlook is further reflected in a buy rating with a price target (PT) of $650 for Strategy’s stock.
