Strategy, the bitcoin treasury company led by executive chairman Michael Saylor, purchased another 22,337 bitcoin for about $1.57 billion last week, continuing one of the largest corporate accumulation strategies in the crypto market.
The company disclosed in a filing with the U.S. Securities and Exchange Commission that the purchases took place between March 9 and March 13 at an average price of $70,194 per coin. The acquisition brings the firm’s total holdings to 761,068 bitcoin.
Strategy said its cumulative bitcoin holdings were acquired for roughly $57.61 billion at an average price of about $75,696 per coin. At the current price near $74,000, the company’s holdings carry a market value close to $50 billion.
The stash represents more than 3.4% of the fixed 21 million supply of Bitcoin, reinforcing MSTR’s status as the largest corporate holder of the asset.
Last week, Strategy purchased 17,994 bitcoin for about $1.28 billion at an average price of $70,946 per coin, bringing the company’s total holdings to 738,731 bitcoin.
At the time of writing, Strategy’s stock (MSTR) is trading up 4.40% in pre-market. Bitcoin is trading slightly shy of $74,000.
Strategy’s stock sales and stock issuance
The latest purchases were financed through a mix of equity sales and preferred stock issuance.
The purchases were funded through at-the-market sales of Strategy’s Class A common stock, MSTR, along with issuances of its perpetual Stretch preferred shares, STRC.
The firm also operates several preferred-equity issuance programs tied to its capital-raising strategy. These include at-the-market programs for STRK, STRC, STRF, and STRD totaling $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion respectively.
Those offerings sit alongside the company’s broader “42/42” initiative, a plan to raise $84 billion through a combination of equity sales and convertible notes to fund additional bitcoin purchases through 2027.
Each preferred share class targets a different investor profile.
STRD carries a 10% non-cumulative dividend and is non-convertible, positioning it as the highest-risk, highest-return option.
STRK pays an 8% non-cumulative dividend and includes a conversion feature that offers potential equity upside. STRF, also non-convertible, provides a 10% cumulative dividend and is structured as the most conservative of the offerings.
STRC features a cumulative dividend with a variable rate paid monthly, designed to adjust over time and keep the shares trading close to their $100 par value.
Saylor hinted at the acquisition before the official disclosure in a post on social media that referenced Strategy’s bitcoin tracker. The message stated that “Stretch the Orange Dots.,” a reference to the firm continuing to buy throughout the price changes.
Source: https://bitcoinmagazine.com/news/strategy-mstr-spends-1-57-billion