Strategy, the Bitcoin treasury firm formerly known as MicroStrategy, bought 4,048 BTC for about $449.3 million between Aug 26 and Sept 1, the company said in an 8-K filing with the SEC on Tuesday.
The purchases averaged $110,981 per Bitcoin, and the firm now reports a total holding of 636,505 BTC, which it values at roughly $70 billion. Michael Saylor, Strategy’s co-founder and executive chairman, said the company’s total cost basis is about $47 billion, implying around $23 billion in paper gains.
Latest buys and scale
The new batch of 4,048 BTC came from the firm’s capital markets activity. Strategy used proceeds from at-the-market sales of its common stock and several classes of perpetual preferred shares.
The filing shows the firm sold 1,237,000 MSTR shares for $425.3 million. It also sold 199,509 shares of STRK for about $19 million, 237,931 shares of STRF for $26.5 million, and 12,973 shares of STRD for about $1 million.
How were the purchases financed?
Strategy is using several other methods to buy Bitcoin. The MSTR sales came from its ATM program, which still has $16.31 billion available for future sales. The preferred stock programs also have large remaining capacities, like $20.39 billion for STRK, $1.8 billion for STRF, and $4.17 billion for STRD.
Each preferred share class carries different terms. STRD is non-convertible and pays a 10% non-cumulative dividend. It carries the highest risk and reward profile.Â
STRK is convertible and pays an 8% non-cumulative dividend, which gives holders some equity upside. STRF is non-convertible and pays a 10% cumulative dividend, making it the most conservative of the three.
Bitcoin’s Price Actions & Holdings
With 636,505 BTC on the books, Strategy’s stash equals more than 3% of Bitcoin’s 21 million maximum supply. The company says its average purchase price across all holdings is $73,765 per coin.
At the time of the filing, Bitcoin was trading near $108,815.85, down about 0.19% in the last 24 hours. The global market cap stood around $2.16 trillion, while 24-hour trading volume rose by 5.39%. Those moves show the wider market held steady as the firm added more coins.
Policy shift and investor reaction
In its Q2 results, Strategy set a guideline not to issue common equity if its market cap to net asset value ratio, or mNAV, fell below 2.5x, except for narrow uses like paying interest or preferred dividends.
Two weeks later, the company clarified its stance. It said it may still issue MSTR below a 2.5x mNAV if it sees the issuance as advantageous. That change drew confusion and some frustration from investors who had expected a firmer limit.
Saylor signalled that more buys might follow. He updated Strategy’s public tracker over the weekend and wrote, “Bitcoin is still on sale.” The remark suggests the company plans to keep adding to its position when it can.
Investors will likely track a few items closely, and one is how quickly Strategy uses the remaining ATM and preferred stock capacities. Another is any further guidance on when and how the company will unlock preferred shares.
Market watchers will also watch Bitcoin’s price action and trading volume to see whether fresh purchases push prices higher or create volatility.
The latest acquisition keeps Strategy at the centre of the market for institutional Bitcoin holders. The firm’s mix of equity and preferred stock sales shows how it funds its purchases without tapping other reserves.
Also Read: Strategy Buys Bitcoins Worth $357M, Growing its Treasury to 632,457 BTC As Bitcoin Price Plummets