How Large Is Strategy’s Latest Bitcoin Purchase?
Strategy acquired an additional 3,015 BTC for approximately $204.1 million at an average price of $67,700 per bitcoin between Feb. 23 and March 1, according to an 8-K filing with the Securities and Exchange Commission. The purchase brings the company’s total holdings to 720,737 BTC, worth roughly $47.5 billion at current prices. The bitcoin was acquired at an average cost of $75,985 per coin, representing a total purchase price of about $54.8 billion including fees and expenses, according to co-founder and executive chairman Michael Saylor. Measured against bitcoin’s 21 million hard cap, Strategy now controls just over 3.4% of total eventual supply. Based on current market prices, the firm is carrying roughly $7.3 billion in unrealized losses.Investor Takeaway
Strategy continues to add to its position despite unrealized losses, reinforcing its status as the largest public bitcoin holder and deepening its leverage to bitcoin price volatility.
How Was the Purchase Funded?
The latest acquisitions were financed through at-the-market sales of Strategy’s Class A common stock, MSTR, and its perpetual Stretch preferred stock, STRC. Last week, the company sold 1,730,563 MSTR shares for approximately $229.9 million. As of March 1, roughly $7.6 billion in MSTR shares remain available for issuance and sale under the program. Strategy also sold 71,590 STRC shares for approximately $7.1 million, with about $3.5 billion worth of STRK shares still available under that program. The company operates multiple preferred equity programs alongside its “42/42” capital plan, which targets $84 billion in equity offerings and convertible notes through 2027 to fund additional bitcoin purchases. Its preferred instruments vary in structure: STRD carries a 10% non-cumulative dividend and is non-convertible; STRK offers an 8% non-cumulative dividend with conversion rights; STRF pays a 10% cumulative dividend; and STRC is a variable-rate cumulative preferred stock with monthly dividends designed to trade near par.Is STRC Becoming the Primary Funding Tool?
STRC has increasingly been used alongside the MSTR ATM program to finance bitcoin accumulation. Benchmark analyst Mark Palmer described STRC as the “primary engine” for funding Strategy’s bitcoin purchases in a recent client note, reiterating a buy rating and a $705 price target. STRC traded as low as $90 in February but has since recovered to just under its $100 par value. On Sunday, Saylor announced that Stretch’s dividend rate would increase by 25 basis points to 11.50% for March. Anchorage Digital also disclosed holding STRC on its balance sheet. Co-founder and CEO Nathan McCauley declined to disclose the size of the position but said, “When the company that operationalizes Bitcoin infrastructure puts capital alongside the company that operationalized the Bitcoin treasury strategy … that's a signal.”Investor Takeaway
The growing reliance on preferred equity to fund bitcoin purchases increases dividend obligations and financial leverage, tying investor returns more directly to bitcoin price performance.
