title: Strategy Buys the Dip, Acquiring Another 7,390 BTC

Strategy, formerly known as MicroStrategy, has acquired another 7,390 BTC. The Bitcoin (BTC) was purchased with approximately $764.9 million

MicroStrategy (NASDAQ:MSTR) has continued its massive Bitcoin (BTC) accumulation, purchasing another 7,390 BTC at an average price of around $103,000 per coin, according to a recent SEC filing.

MicroStrategy (NASDAQ:MSTR) has continued its massive Bitcoin (BTC) accumulation, purchasing another 7,390 BTC at an average price of around $103,000 per coin, according to a recent SEC filing.

The purchase, which was disclosed on Monday, May 14, pushes Strategy’s total BTC holdings to 576,230, highlighting the firm's unwavering commitment to the flagship cryptocurrency.

The firm's persistent bitcoin buying spree has notably reduced its cash position. As of May 18, Strategy's cash, cash equivalents, and marketable securities totaled $230 million, a significant decrease from the previous quarter's $1.2 billion.

Bitcoin purchases funded by stock offerings

This latest batch of bitcoin was acquired with approximately $764.9 million between May 12 and May 18. The cryptocurrency units were purchased at prices ranging from a low of $98,200 to a high of $104,660.

The bitcoin acquisition was funded through a combination of stock offerings, including the sale of 1.7 million shares of its Class A common stock for $705.7 million and 621,555 shares of its Series A perpetual preferred stock for $59.7 million.

The firm also secured an installment loan of $75 million from Silicon Valley Bank at an interest rate of 5.25% per year, serving as part of its revolving credit facility.

Moreover, Strategy has 2.7% of BTC’s total supply

The company is targeting $42 billion in bitcoin purchases by 2027, as part of its expanded “42/42” capital strategy.

Bitcoin is currently trading at around $103,000. MSTR shares fell 2.3% in pre-market trading Monday.

Strategy’s lawsuit

Separately, Strategy disclosed a new class action lawsuit filed May 16, alleging the firm misled investors and failed to disclose risks tied to its bitcoin strategy and new crypto accounting rules.

The complaint, which was filed in the U.S. District Court for the Southern District of New York, focuses on potential issues related to impairment charges on its bitcoin holdings and a lack of clarity on the firm's ability to generate revenue streams.

The company said it will contest the claims but acknowledged uncertainty around potential outcomes.

The plaintiffs are seeking recovery for damages sustained by those who purchased or traded MicroStrategy's securities between March 7, 2021, and February 27, 2024.

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