Bitcoin treasury company Strategy (formerly MicroStrategy) acquired an additional 850 BTC for approximately $99.7 million at an average price of $117,344 per bitcoin between Sept. 15 and Sept. 21, according to an 8-K filing with the Securities and Exchange Commission on Monday.
Strategy now holds a total of 639,835 BTC — worth around $72 billion — bought at an average price of $73,971 per bitcoin for a total cost of around $47.3 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. That represents more than 3% of Bitcoin's total 21 million supply and implies around $25 billion of paper gains.
The latest acquisitions were made using proceeds from at-the-market sales of its Class A common stock, MSTR, and perpetual Strife preferred stock, STRF.
Strategy's STRK, STRC, STRF, and STRD perpetual preferred stock's respective $21 billion, $4.2 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.
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. STRC is a variable‑rate, cumulative preferred stock offering monthly dividends, with adjustable rates designed to keep it near par.
'The orange dots go up and to the right'
Saylor once again hinted at the likelihood of another bitcoin acquisition filing ahead of time, sharing an update on Strategy's bitcoin acquisition tracker on Sunday, stating, "The orange dots go up and to the right."
Strategy's bitcoin acquisitions. Image: Strategy.
Following its Q2 financial results, Strategy committed not to issue common equity if its market cap to net asset value (mNAV) ratio is below 2.5, except for specific purposes such as paying interest on debt obligations and funding preferred equity dividends. However, the firm later reneged on that guidance, clarifying that it will still issue MSTR below 2.5 mNAV if it deems the issuance to be advantageous to provide greater flexibility in executing its capital markets strategy.
Last week, Strategy reported it had bought 525 BTC for $60.2 million, taking its total holdings to 638,985 BTC. The pace of Strategy's bitcoin buys has 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.
Strategy was recently snubbed for inclusion in the S&P 500 index, which instead will add AppLovin, Robinhood, and EMCOR Group on Monday. TD Cowen analysts said the decision, which met all the criteria for inclusion, represented "bias against bitcoin," comparing the exclusion to prior snubs of Facebook and Tesla, although they were eventually added. Analysts at JPMorgan argued the rejection was a "blow to all crypto treasuries," warning that other index providers may also reconsider their inclusion of Strategy and similar crypto treasury firms.
Saylor joined other crypto execs and lawmakers at a roundtable hosted by Republican Sen. Cynthia Lummis and Rep. Nick Begich in Washington, D.C., on Tuesday, aiming to advance strategic bitcoin reserve legislation that, if passed, could see the U.S. purchasing 1 million BTC.
The corporate bitcoin treasury trend
According to Bitcoin Treasuries data, there are now 178 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, Metaplanet, Bullish, Riot Platforms, Trump Media & Technology Group, CleanSpark, and Coinbase make up the remainder of the top 10, with 52,477 BTC, 43,514 BTC, 30,021 BTC, 25,555 BTC, 24,300 BTC, 19,309 BTC, 15,000 BTC, 12,703 BTC, and 11,776 BTC, respectively.
Earlier on Monday, Metaplanet returned to the top five after announcing it had bought a further 5,419 BTC for approximately $632.5 million — the company's largest acquisition to date.
While the number of bitcoin treasury companies continues to rise, the value of many of the cohort's shares is down significantly from their summer peaks, with Strategy itself down 24%, for example.
Although its mNAV has been contracting over the past couple of months, Strategy's $98 billion market cap continues to trade at a premium to its bitcoin net asset value, with some investors concerned about the firm's premium valuation and its numerous bitcoin acquisition programs. 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 1.37.
MSTR closed down 1.3% on Friday at $344.75, according to The Block's Strategy price page, in a week that saw bitcoin fall 2.1%. MSTR is currently down 2.3% in pre-market trading on Monday, per TradingView, and has gained 14.9% year-to-date compared to bitcoin's 20.5%.
