Fresh Off the Heels of a Class Action Lawsuit

Strategy, the world's largest corporate Bitcoin holder, is continuing with its long-running Bitcoin accumulation strategy.

Fresh off the heels of a class action lawsuit unleashed last week, the world’s largest corporate Bitcoin holder, Strategy (NASDAQ:MSTR), is continuing with its long-running Bitcoin accumulation strategy.

The Michael Saylor-led company has bagged a fresh stash of BTC, bringing its total Bitcoin stash to 580,250.

Strategy Boosts Bitcoin Stack To 580,250 BTC

Michael Saylor’s Strategy — formerly known as MicroStrategy— added 4,020 BTC to its balance sheet from May 19 to May 25, spending over $427.1 million on the digital asset, as per a Monday press release.

The latest purchases were made at an average price of $106,237 per coin, with Bitcoin hitting a new all-time high of $111,814 on May 22.

The purchase pushes Strategy’s total holdings to 580,250 BTC — now worth over $63 billion based on the current Bitcoin price of around $109,900. For perspective, Strategy now controls nearly 3% of Bitcoin’s 21 million total supply.

The Nasdaq-traded company said that it has now spent a total of $40.61 billion on buying its Bitcoin stack, with each coin priced on average at $69,800.

According to a filing with the Securities and Exchange Commission, the purchase was funded through three capital-raising mechanisms: an at-the-market (ATM) offering of its Class A common stock, MSTR, perpetual strike preferred stock, STRK, and the issuance of Series A perpetual strife preferred stock, STRF.

Between May 19 and May 25, the company sold 847,000 shares of its common stock (MSTR) for $348.7 million, 678,970 shares of STRK preferred stock for $67.9 million, and 104,423 shares of STRF preferred stock for $10.4 million.

The Tysons, Virginia-based firm began stockpiling Bitcoin under the leadership of Executive Chairman Saylor in August 2020. However, Strategy recently encountered a legal hurdle as a California-based investor has accused the company and its executives of violating federal securities laws by making false and misleading statements about its Bitcoin holdings strategy.

According to the class-action suit, the defendants failed to disclose that “the anticipated profitability of the company’s Bitcoin-focused investment strategy was overstated.”

The complaint, filed on Monday with the U.S. District Court for the Eastern District of Virginia, also alleges that the executives sold a "substantial portion" of their preferred stock holdings to raise capital for more Bitcoin purchases, which ultimately led to a "drastic decrease" in the preferred stock price.

Strategy said that it intends to "vigorously defend" itself against the claims and is confident that it will prevail in court.

The company also announced that it completed a 5-for-1 common stock split on Monday, with the adjusted common stock price now ranging from $39.01 to $40.37 for the period of May 19 to May 25.

Meanwhile, smaller companies on the Nasdaq and elsewhere have emulated the Strategy’s aggressive Bitcoin-buying plan, including Metaplanet (NASDAQ:MPLAN) and Semler Scientific (NASDAQ:SEML).