Imagine sitting down for coffee, and someone tells you they just spent $18 million on something. For most of us, that’s a wild thought. But for Strategy, the company once known as MicroStrategy, it is just another Tuesday. They recently added another 155 Bitcoin to their digital vault.
- Strategy, formerly MicroStrategy, recently purchased an additional 155 Bitcoin, increasing their total holdings to 628,946 BTC, valued at approximately $76 billion.
- The company funded this acquisition by selling shares of its perpetual preferred stocks, STRF and STRC, as part of a larger equity offering plan.
- Strategy’s significant Bitcoin holdings have resulted in substantial unrealized gains, and their capital structure is designed to withstand significant market downturns.
This latest purchase, made between August 4 and August 10, cost them about $116,401 per Bitcoin. It pushes their total holdings to a staggering 628,946 Bitcoin. That’s a digital treasure chest now valued at around $76 billion, according to Michael Saylor, the company’s co-founder and executive chairman.
Think about that for a moment. Strategy bought all this Bitcoin at an average price of $73,288 each. Their total investment, including fees, sits at roughly $46.1 billion. This means they are currently sitting on about $30 billion in unrealized gains. It is a remarkable sum, even in the fast-paced world of crypto.
This latest acquisition was funded by selling shares of their perpetual Strife preferred stock, known as STRF, and their perpetual Stretch preferred stock, STRC. Just last week, Strategy sold 115,169 STRF shares, bringing in about $13.6 million. They still have $1.87 billion worth of STRF shares ready to sell under their “at-the-market” program.
The remaining Bitcoin came from the initial public offering of STRC, which raised a substantial $4.2 billion. These preferred stocks are interesting financial tools. STRF, for example, is non-convertible and offers a 10% cumulative dividend. STRC is newer, with a variable rate starting at 9% annually, paid monthly, designed to keep its price steady near $100.
Strategy’s appetite for Bitcoin is well-known. Their STRK, STRF, and STRD perpetual preferred stock programs have already raised billions. These are all part of a much larger plan, dubbed “42/42,” which aims to raise a total of $84 billion through equity offerings and convertible notes by 2027. This plan was actually upsized from an initial $42 billion goal, showing just how committed they are.
The Strategy Playbook
Michael Saylor, never one to shy away from his convictions, recently shared an update on Strategy’s Bitcoin acquisition tracker. He posted a clear message on X, stating, “If you don’t stop buying Bitcoin, you won’t stop making Money.” It is a mantra that seems to guide their every move.
Interestingly, Strategy did not sell any of its Class A common stock, MSTR, last week. They still have $17 billion available under that program. The company has a rule: they will not issue common equity if their market cap to net asset value (mNAV) ratio drops below 2.5x. Currently, that ratio sits at around 1.5x, which explains the shift in their funding approach.
Strategy reported a record net income of $10 billion in the second quarter. Their operating income soared to approximately $14.03 billion, an astounding 7,106% increase year-over-year. This huge jump was largely due to a $14 billion unrealized gain on their Bitcoin holdings. A new accounting rule now allows the firm to apply fair value accounting to its digital assets, which certainly makes the balance sheet look good.
Wall Street analysts have taken notice. They have praised Strategy’s mNAV-driven issuance model and what they call “capital precision.” Many firms have raised their price targets for MSTR and reaffirmed their bullish ratings. It seems the market is largely on board with Saylor’s vision, at least for now.
Beyond Strategy: The Corporate Tide
While Strategy remains the biggest whale in the corporate Bitcoin ocean, they are certainly not alone. The pace of their Bitcoin buys has slowed a bit recently, as they shifted their focus from common stock to preferred stocks for funding. But the broader trend of corporate Bitcoin accumulation continues to grow.
Data from Bitcoin Treasuries shows that 151 public companies have now adopted some form of Bitcoin acquisition model. It is a quiet revolution, with more and more traditional businesses adding the digital asset to their balance sheets. Strategy, of course, leads the pack by a wide margin.
But who else is in this exclusive club? Other notable players include MARA, with 50,639 Bitcoin, and Tether-backed Twenty One, holding 43,514 Bitcoin. Then there is the Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company, with 30,021 Bitcoin. Riot Platforms, President Trump Media & Technology Group, Metaplanet, Galaxy Digital, CleanSpark, and Coinbase also hold significant amounts, ranging from nearly 12,000 to over 19,000 Bitcoin each.
Strategy’s market cap, currently around $112 billion, still trades at a significant premium compared to its Bitcoin net asset value. Some investors worry about this valuation and the sheer number of Bitcoin acquisition programs the firm has launched. It is a fair question to ask: how much is too much?
However, some analysts argue that Strategy’s debt levels are relatively low, with no major payments due until 2028. This suggests the firm’s leverage remains manageable. It is a delicate balance, for sure.
Saylor himself remains remarkably confident in Strategy’s ability to weather any storm. He told the Financial Times earlier this year that the company’s capital structure is built to withstand a 90% drop in Bitcoin that lasts for four to five years. This resilience comes from its mix of equity, convertible debt, and those preferred instruments. He did acknowledge, with a touch of realism, that shareholders would still “suffer” in such a severe downturn.
On Friday, MSTR closed down 1.7% at $395.13. This was in a week where Bitcoin itself gained 6%, approaching its all-time highs. Yet, MSTR showed strength in pre-market trading on Monday, up 4.8%. Year-to-date, MSTR has climbed 31.7%, outperforming Bitcoin’s 24.4% gain. It seems the market continues to bet on Saylor’s long game.
