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- Strategy buys 390 BTC, increasing its holdings to 640,808 BTC.
- Strategy raises $43.4 million via stock sales to fund Bitcoin.
- Company’s Bitcoin stash now represents over 3% of total supply.
Strategy, formerly known as MicroStrategy, has once again increased its Bitcoin holdings, acquiring an additional 390 BTC for about $43.4 million. The purchase took place between October 20 and October 26 at an average price of $111,117 per Bitcoin. This brings the company’s total Bitcoin stash to 640,808 BTC, valued at nearly $74 billion at current prices.
The total investment that the company has made in Bitcoin, including fees, amounts to approximately $ 47.4 billion, and the average cost it has paid to acquire each Bitcoin is $74,032. Strategy Holdings, at the current market value of $115,379 per Bitcoin, will have approximately $26.6 billion in unrealized gains. This acquisition further strengthens the company’s position as one of the largest corporate holders of Bitcoin, which now accounts for more than 3 percent of the total supply of 21 million.
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Financing Strategy: Preferred Stock Programs Fuel Continued Bitcoin Accumulation
Strategy has been using a set of perpetual preferred stock programs to finance its Bitcoin buying. These are as follows: STRK, STRF, STRD, and STRC, all of which aim to fund the company’s further strategy in Bitcoin. With these programs, Strategy will increase its total capital to $84billion by 2027 under its 42/42 capital scheme. Recently, the company issued 191,404 shares of STRK at a price of $17 million, and there is still ample capacity of $20.35 billion available for issuance under this program.
The stock offerings issued by STRK, STRF, and STRC have varied risk-reward profiles. An example of these STRD provides a 10% non-cumulative dividend and the highest potential for risk-reward. STRK is convertible, and thus it has equity upside, whereas STRF has a 10% cumulative dividend; therefore, it is the safer instrument. STRC is characterized by a variable rate and monthly dividends, which help keep it close to par.
The Broader Landscape: Bitcoin Treasury Firms and Market Performance
Strategy is one of the 190 public companies that have embraced Bitcoin accumulation strategies. Other leading holders include Marathon Digital, Tether-backed Twenty-One, and Metaplanet. However, notwithstanding the growth of Bitcoin treasury companies, the share price of most of them dropped substantially over the last several months, and Strategy stock fell 37%. According to Michael Saylor, the executive chairman of the company, the capital structure is designed to withstand extreme market fluctuations.
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