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  • Mustafa Mulla
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    Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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Why MicroStrategy Slows Down Its Bitcoin Purchase? 

Story Highlights
  • MicroStrategy slows Bitcoin buying after raising less cash through recent MSTR share sales.

  • Meanwhile, tighter premium gap on MSTR stock weakens fundraising power for Bitcoin accumulation.

  • Despite slowdown, MicroStrategy still holds 580,250 BTC, worth over $63 billion total.

Strategy, formerly known as (MicroStrategy), the biggest corporate holder of Bitcoin has been long known for buying huge amounts of BTC, leading the way for other companies to join the Bitcoin wave. But in the past few weeks, things have slowed down for Strategy. 

Why is this happening? Is Strategy starting to lose money? Let’s dive in. 

Recent Purchases Show a Slower Pace

According to K33’s Vetle Lunde, Strategy’s recent purchases are smaller than before. Between May 19 and May 25, the company bought 4,020 bitcoins for about $427 million. 

They used money from selling new MSTR shares but raised only $348.7 million this time, much less than the $705.7 million they raised the week before. 

Just a few months ago, they were raising over $2 billion each week to buy Bitcoin!

Why Is Strategy Slowing Down?

This slowdown has a few reasons. First, the price gap between MSTR’s stock and the actual value of its bitcoin holdings has gotten smaller. That means investors aren’t paying as much extra for MSTR shares anymore, making it harder for the company to raise big sums of money.

Second, more companies are now jumping into the Bitcoin game. Over 70 firms, including big names like Metaplanet and Semler Scientific, have started using their treasuries to hold Bitcoin. 

Just this week, Trump Media and Technology Group also announced it’s holding Bitcoin in its treasury, backed by $2.5 billion from investors. All this new competition is giving people more choices, so MSTR doesn’t have the same edge it once did.

Strategy Still Holds a Big Bitcoin Pile

Even with the slowdown, Strategy still holds an impressive 580,250 BTC, worth over $63 billion at today’s prices. That’s about 2.75% of all Bitcoin out there!

Meanwhile, on May 22, the company shared that it plans to sell its 10% Series A perpetual strife preferred stock for just $0.001 per share. This new sales agreement is expected to bring in a total of $2.1 billion over time through its ATM program. 

However, the company has recorded a massive $15 billion profit as Bitcoin reaches its highest price ever. If bitcoin holds steady, the company’s second-quarter earnings are expected to soar, says Capital strategist Jeff Walton.

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