Strategy Acquires 20,356 Bitcoin for $1.99 Billion, Total Holdings Near 500,000 BTC

TLDR

• Strategy has bought 20,356 more Bitcoin for $1.99 billion at an average price of $97,514 per BTC
• The company’s total Bitcoin holdings now reach 499,096 BTC worth $33.1 billion
• The purchase was funded through a $2 billion zero-coupon convertible note offering
• Strategy now owns about 2.3% of Bitcoin’s total maximum supply
• The purchase aligns with Strategy’s “21/21 Plan” to raise $42 billion for future Bitcoin acquisitions

Strategy, the company that rebranded from MicroStrategy earlier this year, has announced another major Bitcoin acquisition. The firm purchased 20,356 Bitcoin between February 18 and 23, 2025, spending $1.99 billion at an average price of $97,514 per Bitcoin.

This latest buy brings Strategy’s total Bitcoin holdings to 499,096 BTC, just shy of the symbolic half-million mark. At current market prices, the company’s Bitcoin treasury is valued at approximately $33.1 billion, with an average purchase price of $66,357 per coin since Strategy began buying Bitcoin in 2020.

The Bitcoin purchase was disclosed by Strategy’s executive chairman Michael Saylor on social media platform X on February 24. The company also reported the transaction to the Securities and Exchange Commission (SEC) through an 8-K filing as required by regulations.

To fund this massive purchase, Strategy raised $2 billion through a zero-coupon convertible note offering. These notes will mature on March 1, 2030, and can be converted to Strategy’s Class A common stock at a conversion price of $433.43 per share, allowing $1,000 in notes to be converted into 2.3072 shares of stock.

“21/21 Plan” Reshapes Corporate Bitcoin Strategy

“We plan to use the proceeds for general corporate purposes, including the acquisition of Bitcoin and for working capital,” Strategy stated in its announcement. The company generated $1.99 billion in net proceeds from the offering after deducting fees and expenses.

With 499,096 Bitcoin now in its possession, Strategy controls roughly 2.3% of Bitcoin’s maximum supply of 21 million coins. This percentage is even higher when accounting for the estimated 3-4 million Bitcoin believed to be permanently lost, giving Strategy control of more than 3% of the accessible Bitcoin supply.

The purchase is part of Strategy’s ambitious “21/21 Plan,” through which the company aims to raise up to $42 billion – using both equity and fixed-income instruments – to finance additional Bitcoin purchases over the next three years. According to Strategy’s announcement, the company has already raised nearly $20 billion toward this target.

Strategy’s president and CEO Phong Le previously explained the plan: “As a Bitcoin Treasury Company, we plan to use the additional capital to buy more bitcoin as a treasury reserve asset in a manner that will allow us to achieve higher BTC Yield.”

Following news of the purchase, Strategy’s stock (MSTR) saw modest gains, trading up 1.27% in pre-market at $303.50. The stock has delivered impressive returns over the past year, surging 345% compared to Bitcoin’s 86.7% rise during the same period.

The transformation of Strategy from a business intelligence software company to the world’s largest corporate Bitcoin holder has been remarkable. Its Bitcoin holdings vastly exceed those of any other public company. For comparison, the second-largest corporate holder, Block (formerly Square), holds approximately 8,027 Bitcoin, while Tesla has around 5,465 Bitcoin in its treasury.

Strategy’s aggressive Bitcoin acquisition comes despite recent volatility in cryptocurrency markets. The total crypto market capitalization has declined from its December peak of $3.90 trillion to $3.31 trillion at the time of writing. Bitcoin itself trades at around $95,389, down 0.6% in the past 24 hours and nearly 10% from its post-election highs.

Nevertheless, institutional interest in Bitcoin appears to be growing. In early February, investment giant BlackRock increased its stake in Strategy to five percent, indicating growing mainstream financial interest in gaining Bitcoin exposure through public companies.

Other companies including Semler Scientific, Rumble, and Metaplanet have also made major Bitcoin purchases in 2025. This ongoing institutional adoption comes amid expectations of more favorable regulatory developments following Donald Trump’s victory in the November 2024 presidential election.

Trump campaigned on crypto-friendly policies and has established a working group to explore regulatory frameworks since taking office in January. Michael Saylor has expressed willingness to advise the Trump administration on digital asset policy if asked to serve on a digital assets advisory council.

Security for Strategy’s massive Bitcoin holdings remains a priority. While the company doesn’t disclose full details of its security measures, Saylor has described a sophisticated “quad-layered” cold storage solution that involves multiple geographical locations and institutional custody partnerships.

The company reportedly uses multi-signature wallets that require multiple private keys for transaction authorization. These keys are distributed across different storage systems and locations, with no single person having access to all keys.

Strategy’s approach to the 500,000 Bitcoin threshold represents more than just a numerical achievement—it marks a turning point for institutional cryptocurrency adoption. At current prices, this level of holdings represents over $40 billion in digital assets controlled by a single public company.

As Strategy approaches the half-million Bitcoin mark, market observers will be watching to see how this concentration of ownership impacts Bitcoin’s price dynamics and its proposition as a decentralized store of value. The company’s continued accumulation strategy will likely influence both retail and institutional investor sentiment in the months ahead.