Strategy Adds 3,081 Bitcoin Worth $357 Million
Acryptoinvest.news: Strategy announced a new Bitcoin purchase on Monday, adding 3,081 BTC worth $356.9 million at an average price of $115,829 per coin, according to an 8-K filed with the U.S. Securities and Exchange Commission. The purchase increased the company’s treasury to about 632,457 BTC, solidifying its lead among public corporate holders.
The company that manages the Bitcoin treasury currently holds about $70 billion worth of BTC at current prices, purchased at an average of $73,527 per Bitcoin, for a total value of about $46.50 billion, including fees. That means about $23.5 billion in unrealized profits.
Strategy's most recent acquisitions were funded by proceeds from its share placement programs. Between August 18 and 24, the company sold 875,301 shares of MSTR through the Common ATM program for approximately $309.9 million in net proceeds, 210,100 shares of 8% Series A Perpetual Strike Preferred Stock (STRK) for $20.4 million, 237,336 shares of 10% Series A Perpetual Strife Preferred Stock (STRF) for $26.6 million, and 944 shares of 10% Series A Perpetual Stride Preferred Stock (STRD) for $0.1 million.
STRK pays an 8.00% coupon, while STRF and STRD pay 10.00% on the perpetual preferred notes. STRC is a cumulative floating rate preferred note intended to trade at approximately $100 par value at the floating rate. There was no sales of Series A perpetual floating rate preferred notes (STRC). As of August 24, the remaining issue size of Common ATM was $16.73 billion, STRK was $20.41 billion, STRF was $1.82 billion, STRD was $4.17 billion, and STRC was $4.20 billion.
Guide to Financing and Capital Markets
The company’s recent BTC acquisitions have been financed through its preferred stock programs. The company’s strategy has relied on perpetual preferred stock, convertible bonds, and publicly traded shares to fund its BTC purchases. According to Wall Street analysts, this model allows the company to issue shares when its market value trades at a premium to the Bitcoin price per share embedded in its balance sheet.
With a market cap of about $112 billion versus about $70 billion in Bitcoin, Strategy shares trade at a market-to-net asset value multiple of about 1.6x, or a premium of about 60% to the value of its BTC holdings.
This month, TD Cowen reiterated its $680 price target after Strategy bought another $51.4 million in bitcoin, citing the incremental nature of the issuance and relatively modest debt profile.
Additionally, Strategy has updated its MSTR Equity ATM Guidance to match issuance rates to mNAV ranges to provide guidance with more flexibility. In short, the higher the mNAV multiple, the more aggressively Strategy plans to issue shares to acquire additional bitcoin. At lower mNAV levels, the company prioritizes liabilities and may consider buybacks.
The latest purchase follows a weekend hint from Executive Chairman Michael Saylor, who posted “Bitcoin is Selling” alongside a chart of the company’s holdings published on SaylorTracker. A week earlier, he had touted Strategy’s “Bitcoin Standard” rating, noting that the stock’s annualized returns since adopting BTC had outperformed the Magnificent Seven and major asset classes tracked by the company.
However, last week, MSTR fell to its lowest since April before rebounding as investors continued to debate the stock’s premium to Bitcoin’s net asset value. Proponents argue that the premium is a feature, not a bug, and provides more accessible capital to acquire more BTC as mNAV rises.
Beyond Strategy, more and more public companies are adopting Bitcoin treasury management strategies. The dashboard lists miners MARA and Riot, financial firms like Galaxy Digital, and others including the Bitcoin Standard Treasury Company, Trump Media, and Metaplanet among notable holders. Strategy remains the leader. After today’s disclosure, its holdings are just under, or about 3%, of the total supply of 21 million Bitcoin.
Source: cryptonews.net
