Imagine sitting down for coffee, and someone tells you they just spent over half a billion dollars on a single asset. That is what Strategy, the company once known as MicroStrategy, did recently. They added a substantial amount of Bitcoin to their corporate treasury.
- Strategy, formerly MicroStrategy, recently invested over $500 million in Bitcoin, significantly increasing its holdings.
- The company acquired nearly 5,000 more Bitcoin between June 23 and June 29, bringing its total holdings to over $64 billion.
- Strategy funds these Bitcoin purchases by selling its own stock, including common and preferred shares, as part of a larger plan.
Between June 23 and June 29, Strategy acquired another 4,980 Bitcoin. This purchase cost them about $531.9 million. The average price for each Bitcoin came out to $106,801, according to a recent filing with the Securities and Exchange Commission.
With this latest acquisition, Strategy now holds a staggering 597,325 Bitcoin. Think about that number for a moment. It is worth more than $64 billion today. The company’s co-founder, Michael Saylor, shared these figures. He noted their total cost, including fees, was around $42.4 billion, with an average purchase price of $70,982 per Bitcoin.
This massive holding represents more than 2.8 percent of Bitcoin’s entire 21 million coin supply. It also suggests paper gains of about $21.6 billion. That is quite a return for a company that started buying Bitcoin in earnest just a few years ago.
A Strategy Built on Bitcoin
Where did Strategy get the money for these purchases? They used proceeds from selling various types of their own stock. This included their Class A common stock, MSTR, and two types of perpetual preferred stock, STRK and STRF.
Last week, Strategy sold 1,354,500 MSTR shares. This brought in about $519.5 million. The company still has $18.1 billion worth of MSTR shares available to sell under that program. They also sold 276,071 STRK shares for $28.9 million, with $20.5 billion still available.
And 284,225 STRF shares were sold for $29.7 million. There is $1.9 billion of STRF stock remaining. These stock sales are part of Strategy’s ongoing plan to acquire more Bitcoin.
These ATM (at the market) programs for STRK and STRF stock are significant. They aim to raise $21 billion and $2.1 billion respectively. These are in addition to Strategy’s “42/42” plan. This larger plan targets an $84 billion capital raise through equity offerings and convertible notes. The goal is to buy Bitcoin through 2027. This plan was upsized from an initial $42 billion goal, known as the “21/21” plan, after the equity side was used up.
It is a bold financial maneuver. Strategy essentially uses its own stock as a funding mechanism to buy more Bitcoin. It is a cycle that has defined their corporate treasury strategy for years.
Saylor’s Vision and a Growing Trend
Michael Saylor, never one to shy away from a strong opinion, recently dropped another hint about Bitcoin. He updated Strategy’s Bitcoin portfolio tracker on Sunday. He stated, “In 21 years, you’ll wish you’d bought more.”
This statement refers to his keynote speech at BTC Prague. There, he made a striking prediction. Saylor believes Bitcoin could be worth $21 million in 21 years. It is a number that certainly gets people talking.
Strategy had made a smaller acquisition just before this latest one. They bought 245 Bitcoin for about $26 million between June 16 and June 22. The average price then was $105,586 per Bitcoin. This brought their total holdings to 592,345 BTC at that time.
The pace of Strategy’s Bitcoin purchases had slowed in recent weeks. They had shifted their focus from using their common stock ATM program. Instead, they used their perpetual preferred stocks to fund acquisitions. Now, they are back to tapping the MSTR ATM for the first time in over a month.
Strategy is not alone in this approach anymore. Bitcoin Treasuries data shows 134 public companies have now adopted some form of Bitcoin treasury. It is a growing list. Companies like Twenty One, backed by Tether, and Nakamoto have joined in. President Trump’s Trump Media and GameStop are also on the list. Semler Scientific and KULR have also adopted this Bitcoin acquisition model. Michael Saylor and Strategy pioneered this model.
Just this Monday, Japanese investment firm Metaplanet announced its own significant purchase. They added 1,005 Bitcoin to their holdings. This brings their total to 13,350 Bitcoin. The trend is clearly spreading beyond the US borders.
The Market’s Take
Strategy’s market capitalization stands at $105 billion. This trades at a notable premium compared to its Bitcoin net asset value. Some investors continue to express concerns about this valuation. They also question the increasing number of Bitcoin acquisition programs Strategy employs.
However, analysts at Bernstein offer a different view. They argue that Strategy’s debt levels are relatively low. Also, no payments are due until 2028. This suggests the company’s financial obligations remain manageable. It is a point that offers some reassurance to those watching closely.
On Friday, MSTR stock closed down 0.7 percent at $383.88. This was in a week where Bitcoin itself saw a gain of 5.6 percent. By Monday morning, MSTR was up 1.7 percent in pre-market trading. It has gained 28 percent year-to-date. This shows the stock’s close tie to Bitcoin’s movements, but also its own unique market dynamics.
The story of Strategy and its Bitcoin holdings continues to unfold. It is a bold experiment in corporate finance. It asks us to consider how companies might store value in the future. What will the next chapter bring for this Bitcoin-centric firm?
