Isabella García
Strategy (formerly MicroStrategy) has expanded its Bitcoin treasury, acquiring an additional 4,048 BTC for roughly $449.3 million at an average price of $110,981 per coin between August 26 and September 1, according to a recent SEC 8-K filing.
The firm now holds a total of 636,505 BTC, valued at approximately $70 billion, bought at an average of $73,765 per bitcoin for a total cost of $47 billion. This represents over 3% of Bitcoin’s total supply and implies around $23 billion in unrealized gains.
Funding Bitcoin Buys Through Equity and Preferred Stock
The latest purchases were financed using proceeds from at-the-market (ATM) sales of its Class A common stock (MSTR) and perpetual preferred stocks STRK, STRF, and STRD.
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1,237,000 MSTR shares sold for $425.3 million
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199,509 STRK shares sold for ~$19 million
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237,931 STRF shares sold for $26.5 million
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12,973 STRD shares sold for $1 million
Each preferred stock carries different terms:
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STRD: non-convertible, 10% non-cumulative dividend, high risk/reward
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STRK: convertible, 8% non-cumulative dividend, equity upside
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STRF: non-convertible, 10% cumulative dividend, most conservative
Strategy’s preferred stock ATM programs supplement its “42/42 plan”, targeting $84 billion in equity and convertible notes for Bitcoin acquisitions through 2027.
Michael Saylor: “Bitcoin Is Still on Sale”
CEO Michael Saylor signaled potential future purchases, emphasizing in Strategy’s BTC acquisition tracker: “Bitcoin is still on sale.”
In Q2, the company pledged not to issue common equity below a 2.5x market cap to NAV ratio, except for specific purposes. However, Strategy clarified that it may still issue MSTR below this threshold if advantageous for capital execution.
Recent Acquisition Trends and Legal Updates
Last week, Strategy bought 3,081 BTC for $357 million, bringing total holdings to 632,457 BTC. The firm has shifted funding focus from MSTR ATM sales to perpetual preferred stock purchases, enabling larger weekly acquisitions.
Separately, a class-action lawsuit filed in May over alleged misleading statements regarding its Bitcoin strategy was dropped by investors last Thursday.
The Corporate Bitcoin Accumulation Race
Data from Bitcoin Treasuries shows 163 public companies actively acquiring Bitcoin. Strategy remains the largest corporate holder. Other notable holders include:
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MARA: 50,639 BTC
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Tether-backed Twenty One: 43,514 BTC
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Bitcoin Standard Treasury Company: 30,021 BTC
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Bullish: 24,000 BTC
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Metaplanet: 20,000 BTC
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Riot Platforms: 19,239 BTC
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Trump Media & Technology Group: 15,000 BTC
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CleanSpark: 12,703 BTC
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Coinbase: 11,776 BTC
Market Valuation and Analyst Perspectives
Despite a contracting mNAV, Strategy’s $94.8 billion market cap trades at a significant premium to its Bitcoin net asset value, with some investors concerned about its valuation and aggressive acquisition programs.
Analysts note that low debt levels and no payments due until 2028 keep the firm’s leverage manageable. Strategy’s mNAV currently sits at 1.37x.
Saylor has stated the capital structure is designed to withstand a 90% Bitcoin drop over four to five years, though shareholders would still face losses under such a scenario.
MSTR and Bitcoin Performance
MSTR closed at $334.41, down 1.3% last Friday, while Bitcoin dropped roughly 2%. Year-to-date, MSTR is up 11.4%, compared to Bitcoin’s 17.4% gain.
