Shares of Strategy (NASDAQ:MSTR), the Bitcoin-focused company led by Michael Saylor, rose 3.6% in premarket trading following news of a substantial Bitcoin acquisition.
On Monday, Strategy revealed it had acquired an additional 4,020 Bitcoins at a total cost of $427.1 million. This purchase was financed through the sale of at-the-market perpetual strike preferred stock.
This latest acquisition strengthens Strategy’s already sizable Bitcoin holdings, which now total roughly 580,250 coins purchased at a combined cost of about $40.6 billion. With the current market value exceeding $63.5 billion, the company’s investment has appreciated significantly. Strategy’s aggressive accumulation of Bitcoin has been a key factor driving its stock’s upward momentum.
Benchmark analyst Mark Palmer commented on Strategy’s Bitcoin growth, highlighting its impressive yield. “Strategy’s BTC Yield, measuring the change in its Bitcoin holdings relative to total assumed shares outstanding from January 1 through May 25, was 16.8%,” Palmer explained. This metric illustrates the company’s capacity to increase its Bitcoin assets in relation to share count—a strong indicator for investors evaluating its performance in the crypto market.
Reflecting this confidence, the analyst maintains a buy rating on Strategy with a price target of $650 per share.