Michael Saylor’s Strategy, formerly MicroStrategy, has slowed its pace of Bitcoin acquisitions amid a declining premium of its shares relative to its Bitcoin holdings and increasing competition from more than 70 firms adopting Bitcoin treasury strategies. According to K33 Research, while Strategy remains the largest publicly traded holder of Bitcoin with over 580,250 BTC worth $63.3 billion, recent buying activity has decreased significantly. Between May 19 and May 25, Strategy purchased 4,020 BTC for $427.1 million, down from previous weeks’ higher procurement levels funded through its $21 billion at-the-market (ATM) offering.
K33's head of research Vetle Lunde highlighted that the utilization of the ATM offering has decreased from an average of $2.13 billion weekly in late 2024 to $788 million recently. The MSTR premium dropped from 185% to 163%, levels unseen since early April, reflecting a compressed market valuation that pressures the firm to reduce aggressive equity offerings to avoid investor dilution.
Competition in the Bitcoin treasury space has expanded sharply with notable entrants such as Twenty One, Nakamoto, Metaplanet, and Trump Media joining the arena. This broadening competitive landscape is causing traders to diversify beyond Strategy’s stock, diminishing its market dominance in equity-based Bitcoin exposure.
Despite this, Strategy holds a massive Bitcoin reserve, representing over 2.75% of Bitcoin’s capped supply, and continues to reap benefits from BTC trading near record highs. Analyst Jeff Walton believes that Strategy’s deep Bitcoin exposure gives an unparalleled edge and potential to become the world’s largest publicly traded company.
In a related note, the divergence between Bitcoin’s price hike of approximately 13% this month and a 3% decline in MSTR shares reflects skepticism about the firm’s market premium. Strategy has diversified its capital raise methods by including preferred securities in addition to common stock, possibly to mitigate dilution amidst compressed valuations.