Strategy Acquires 4,603 Bitcoin for $370 Million, First Purchase in Two Months
Quick Look
- Strategy acquired 4,603 Bitcoin for $370 million at an average price of $80,318, increasing its holdings to 845,050 BTC valued at $63.3 billion.
- The purchase was funded by a $602 million MSTR stock sale, with proceeds also used to boost cash reserves and repurchase preferred STRC stock.
- The move marks the company's first Bitcoin acquisition since mid-June.
AI-generated summary
Why It Matters
Strategy, formerly known as MicroStrategy, has been accumulating Bitcoin as a primary treasury reserve asset under the leadership of Michael Saylor. The company uses various financial instruments, including perpetual preferred stock (STRC), to fund its Bitcoin purchases. Prior to this acquisition, Strategy had not bought Bitcoin since mid-June, following a small Bitcoin sale in early June.
Michael Saylor’s Strategy acquired 4,603 Bitcoin for $370 million, marking the first acquisition from the largest corporate Bitcoin holder in two months.
Strategy acquired 4,603 Bitcoin (BTC) at an average purchase price of $80,318, pushing its holdings to 845,050 BTC, acquired for a total of $63.3 billion at an average price of $75,413, according to a Monday 8-k filing with the Securities and Exchange Commission.
The Bitcoin purchase was funded by the net proceeds of a 602 million MSTR common stock sale. The company used $30 million of the net proceeds to increase its USD Cash reserve and $151.8 million to repurchase its preferred STRC stock.
Nasdaq-traded MSTR was up less than 1% in Monday’s pre-market activity, after dropping more than 7% on Friday.
The move marks Strategy’s first corporate Bitcoin acquisition since mid-June, when the company last acquired 1,587 BTC for roughly $100 million.
On Sunday, Strategy’s co-founder and executive chairman, Michael Saylor, signaled that the company will resume accumulating Bitcoin, tweeting “We’re Back” in a widely viewed X post. Saylor has been known for posting cryptic weekend teasers before official announcements of the company’s larger treasury moves.
Strategy’s perpetual preferred stock, STRC, gained 0.44% in pre-market activity on Monday, to change hands at $97.33, or a 2.67% discount to its intended $100 par value, Yahoo Finance data shows.
STRC is one of Strategy’s main mechanisms to fund its Bitcoin accumulation. Trading below par limits Strategy’s ability to raise funds through STRC sales. It may also force the company to further increase its nominal dividend rate to attract buyers and protect STRC’s price.
In its June 29 8-K filing, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends and increased the annual dividend rate on its STRC preferred stock to 12%. Strategy disclosed the sale of 32 Bitcoin in early June, as its first reported Bitcoin sale since the 2022 tax-loss transaction.
What to Watch
AI outlook — possibilities, not facts
Strategy will continue accumulating Bitcoin in the coming months
Likely · Within months
Strategy may increase the dividend rate on STRC preferred stock to support its price
Possible · Within months
Open Questions
- Whether Strategy will continue regular Bitcoin acquisitions following this purchase
- How the company plans to address STRC trading below par value
- Whether further preferred stock sales or dividend adjustments are planned
