Strategy’s Bold Bitcoin Play: Hundreds of BTC Added This Week
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Strategy (formerly MicroStrategy) has expanded its Bitcoin holdings with the purchase of an additional 390 BTC for roughly $43.4 million at an average price of $111,117 per coin, according to an SEC filing.
This brings the company’s total bitcoin treasury to 640,808 BTC, valued at approximately $74 billion, acquired at an average cost of $74,032 per token. The holdings now represent over 3% of Bitcoin’s total supply, implying $26.6 billion in paper gains at current prices around $115,379.
The latest acquisitions were funded through at-the-market sales of the company’s perpetual preferred stocks – STRK, STRC, STRF, and STRD – as part of its expanded “42/42” capital plan, aimed at raising $84 billion for bitcoin purchases through 2027.
Each preferred stock has distinct characteristics: STRK is convertible with an 8% non-cumulative dividend, STRF is non-convertible with a 10% cumulative dividend, STRD is non-convertible with a 10% non-cumulative dividend and higher risk-reward, while STRC offers a variable-rate cumulative dividend.
Strategy remains the largest bitcoin treasury company among 190 public firms holding bitcoin, with competitors including MARA, Tether-backed Twenty One, Metaplanet, Adam Back, and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company. Despite growing adoption, many of these companies’ shares have fallen sharply from summer highs. Strategy’s stock dropped 37%, with a market cap-to-net asset value ratio around 1.1.
Co-founder Michael Saylor has emphasized that the company’s capital structure is built to endure a sustained 90% drop in bitcoin over four to five years, though shareholders would experience losses. Last week, Strategy also added 168 BTC for $19 million at an average of $112,051 per coin, with Saylor referring to the purchase as “orange dot day.” Strategy’s stock closed Friday at $289.08, up 1.5%, and rose 4.1% in pre-market trading on Monday.
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