Bitcoin treasury company Strategy (formerly MicroStrategy) acquired an additional 155 BTC +1.40% for approximately $18 million at an average price of $116,401 per bitcoin between Aug 4 and Aug 10, according to an 8-K filing with the Securities and Exchange Commission on Monday.
Exactly five years on from its first bitcoin purchase in 2020, Strategy now holds a total of 628,946 BTC — worth around $76 billion — bought at an average price of $73,288 per bitcoin for a total cost of around $46.1 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. That's the equivalent of nearly 3% of bitcoin's total 21 million supply and implies around $30 billion of paper gains.
The latest acquisitions were made using proceeds from sales of its perpetual Strife preferred stock, STRF, and perpetual Stretch preferred stock, STRC. Last week, Strategy sold 115,169 STRF shares for approximately $13.6 million. As of Aug 10, $1.87 billion worth of STRF shares remain available for issuance and sale under its at-the-market program, the firm said. The remaining bitcoin were acquired using funds from the previously completed $4.2 billion initial public offering for STRC.
STRF is non-convertible with a 10% cumulative dividend, making it the most conservative of Strategy's preferreds. STRC is a new variable-rate, cumulative preferred stock starting at 9% annually, paid monthly, with adjustable rates to keep it trading near its $100 par.
Strategy's STRK and STRF, and STRD perpetual preferred stock's respective $21 billion, $2.1 billion, and $4.2 billion ATM programs are in addition to the firm's "42/42" plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027 — upsized from its initial $42 billion, "21/21" plan after the equity side was depleted.
Change of strategy
Saylor again hinted at the likelihood of another bitcoin acquisition filing ahead of time, sharing an update on Strategy's bitcoin acquisition tracker on Sunday, stating, "If you don't stop buying Bitcoin, you won't stop making Money."
However, no shares of its Class A common stock, MSTR, were sold last week, with $17 billion remaining under that ATM program. In its Q2 financial results, Strategy committed not to issue common equity if its market cap to net asset value (mNAV) ratio is below 2.5x, except for specific purposes such as paying interest on debt obligations and funding preferred equity dividends. Strategy's mNAV currently sits at around 1.5x.