Bitcoin treasury company Strategy (formerly MicroStrategy) acquired an additional TK BTC for approximately $TK million at an average price of $TK per bitcoin between Aug 25 and Sept. 1, according to an 8-K filing with the Securities and Exchange Commission on Monday.
Strategy now holds a total of 636,505 BTC — worth around $70 billion — bought at an average price of $73,765 per bitcoin for a total cost of around $46.95 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. That's the equivalent of more than 3% of bitcoin's total 21 million supply and implies around $24 billion of paper gains.
The latest acquisitions were made using proceeds from at-the-market sales of its Class A common stock, MSTR, perpetual Strike preferred stock, STRK, perpetual Strife preferred stock, STRF, and perpetual Stride preferred stock, STRD.
STRD is non‑convertible with a 10% non‑cumulative dividend and the highest risk‑reward profile. STRK is convertible with an 8% non‑cumulative dividend, allowing equity upside. STRF is non‑convertible with a 10% cumulative dividend, making it the most conservative.
Strategy's STRK, STRF, and STRD perpetual preferred stock's respective $21 billion, $2.1 billion, and $4.2 billion ATM programs are in addition to the firm's "42/42" plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027 — upsized from its initial $42 billion, "21/21" plan after the equity side was depleted.
'Bitcoin is still on sale'
Saylor again hinted at the likelihood of another bitcoin acquisition filing ahead of time, sharing an update on Strategy's BTC acquisition tracker on Sunday, stating, "Bitcoin is still on sale."
Strategy's bitcoin acquisitions. Image: Strategy.
In its Q2 financial results, Strategy committed not to issue common equity if its market cap to net asset value (mNAV) ratio is below 2.5x, except for specific purposes such as paying interest on debt obligations and funding preferred equity dividends. However, much to the confusion and frustration of many market participants, Strategy reneged on that guidance just two weeks later, clarifying that it will still issue MSTR below 2.5x mNAV if it deems the issuance to be "advantageous to the company" to provide greater flexibility in executing its capital markets strategy.
Last week, Strategy reported it had bought 3,081 BTC for $357 million, taking its total holdings to 632,457 BTC. The pace of Strategy's bitcoin buys had generally been slowing in recent weeks as it switched focus from its common stock ATM program to its perpetual preferred stocks for funding bitcoin acquisitions, but renewed MSTR issuance saw larger purchases for the week ending Aug. 24.
On Thursday, a group of Strategy investors dropped their class action lawsuit, filed in May, that claimed the bitcoin treasury company had made false and misleading statements about its investment strategy.
The corporate bitcoin accumulation race
According to Bitcoin Treasuries data, there are now 163 public companies that have adopted some form of bitcoin acquisition model. MARA, Tether-backed Twenty One, Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company, Bullish, Metaplanet, Riot Platforms, Trump Media & Technology Group, CleanSpark, and Coinbase make up the remainder of the top 10, with 50,639 BTC, 43,514 BTC, 30,021 BTC, 24,000 BTC, 20.000 BTC, 19,239 BTC, 15,000 BTC, 12,703 BTC, and 11,776 BTC, respectively.
While its mNAV has been contracting during the past couple of months, Strategy's $94.8 billion market cap continues to trade at a significant premium to its bitcoin net asset value, with some investors concerned about the firm's premium to NAV valuation and its numerous bitcoin acquisition programs in general. However, certain analysts argue that with Strategy's relatively low debt levels and no payments due until 2028, the firm's leverage remains manageable. Strategy's mNAV currently sits at around 1.37x.
Saylor also remains confident in Strategy's resilience. In an interview earlier this year, he said Strategy's capital structure is designed to withstand a 90% drop in bitcoin that persists for four to five years, thanks to its mix of equity, convertible debt, and preferred instruments — though he acknowledged that shareholders would still "suffer" in such a scenario.
MSTR closed down 1.3% on Friday at $334.41, according to The Block's Strategy price page, in a week that saw bitcoin fall around 2%. MSTR is currently up 11.4% year-to-date compared to bitcoin's 17.4%.
