Quick Takeaways
- Strategy (formerly MicroStrategy) bought 390 BTC for $43.4 million at an average price of $111,117 per Bitcoin.
- The firm now holds 640,808 BTC, valued at $74 billion, representing over 3% of the total Bitcoin supply.
- Purchases were funded via the sale of perpetual preferred stock under the company’s expanded $84 billion “42/42” plan.
Michael Saylor’s Strategy Expands Bitcoin Holdings Again
Michael Saylor’s Strategy has added 390 Bitcoin (BTC) to its already massive treasury. The company spent $43.4 million between October 20 and 26 at an average price of $111,117 per BTC, according to a recent SEC filing.
This brings the firm’s total Bitcoin holdings to 640,808 BTC, valued at roughly $74 billion based on current market prices. The company’s average purchase price across all holdings is $74,032 per BTC, totaling $47.4 billion in acquisition costs.
The haul represents over 3% of Bitcoin’s total supply and gives Strategy a paper gain of approximately $26.6 billion at current prices.
Funded Through Preferred Stock Programs
Strategy financed the latest purchase through proceeds from the sale of its perpetual preferred stock, including STRK, STRF, and STRD series. These programs are part of its $84 billion “42/42” capital plan, designed to fuel continued Bitcoin accumulation through 2027.
Last week, the firm sold 191,404 STRK shares for about $17 million, 175,634 STRF shares for $19.4 million, and 87,462 STRD shares for $7 million. No Class A common stock sales occurred during this period.
According to the filing, STRD offers a 10% non-cumulative dividend and the highest risk-reward profile, while STRK includes an 8% convertible dividend, giving investors equity exposure. STRF and STRC provide more conservative dividend options.
A Growing List of Bitcoin Treasury Companies
Data from Bitcoin Treasuries shows 190 public firms now hold Bitcoin on their balance sheets. Alongside Strategy, top holders include Marathon Digital (MARA), Twenty One (Tether-backed), Metaplanet, and Bitcoin Standard Treasury Co., with holdings ranging from 30,000 to 53,000 BTC.
Despite expanding adoption, many of these companies’ share prices have fallen sharply from midyear highs. Strategy’s stock has declined 37%, pushing its market-cap-to-NAV ratio down to 1.1.
Saylor: “It’s Orange Dot Day.”
Saylor teased the latest purchase on X (formerly Twitter), posting “It’s orange dot day”, referencing the firm’s signature acquisition tracker.
The announcement followed last week’s smaller purchase of 168 BTC worth $19 million, showing Saylor’s continued conviction in Bitcoin as the company’s primary treasury asset.
Despite grocery store variation, Saylor has reiterated that Strategy’s capital structure, built on a blend of equity, debt, and preferred stock, can hold out even if a 90% Bitcoin price decline survives several years.
Disclaimer:
This article is for informational use only and does not constitute fiscal or investing advice. Invariably, suffice your main research before frame in digital assets.
