Key Takeaways
- Strategy's bitcoin buying pace is slowing amid declining MSTR premiums.
- Recent weekly funding dropped from $1.31B to $348.7M for BTC buys.
- Over 70 firms now follow Strategy's bitcoin treasury model.
Strategy, formerly known as MicroStrategy, has continued purchasing bitcoin but at a noticeably slower pace than in previous months.
The deceleration reflects reduced investor premiums on its stock and growing competition among corporate treasuries adopting similar strategies, according to a new report from K33 Research.
Recent acquisition details
Between May 19 and May 25, Strategy acquired 4,020 BTC for $427.1 million at an average price of $106,237.
The majority of funds—$348.7 million—came from its ongoing $21 billion at-the-market (ATM) share offering.
This marks a decline from $705.7 million raised the prior week and $1.31 billion during the first week of May.
Analysis from K33 research
Vetle Lunde, Head of Research at K33, noted:
The pace of utilization of its new $21 billion at-the-market offering is considerably slower than the pace of the first $21 billion ATM offering.
Between November 4 and December 16, Strategy averaged $2.13 billion weekly from its initial ATM, compared to just $788 million weekly over the past three weeks.
Increasing competition
Compounding the issue is increased competition.
More than 70 companies now hold bitcoin as part of their treasury strategy.
These companies include Twenty One, Nakamoto, and Metaplanet.
Most recently, Trump Media and Technology Group joined this list.
They secured $2.5 billion in backing from institutional investors.
Impact on Strategy’s premium
Meanwhile, Strategy’s premium to net asset value fell sharply, dropping from 185% to 163% last week.
Strategy now holds 580,250 BTC worth over $63.3 billion, with unrealized gains near $23 billion.
These holdings represent roughly 2.75% of bitcoin’s capped 21 million supply.
