- Strategy boosts bitcoin stash with fresh $51.4 million purchase.
- Company expands treasury, funding acquisitions through preferred stock programs.
- Holdings now exceed $72.4 billion, reflecting strong accumulation strategy.
According to a recent disclosure, Bitcoin treasury giant Strategy has expanded its already massive holdings with another purchase. The company acquired 430 BTC worth $51.4 million, raising its total stash to about 629,376 BTC.
The firm revealed that it paid an average of $119,666 per bitcoin in this latest round of acquisitions. This continues Strategy’s long-standing capital-markets-funded campaign, which has positioned it as the world’s largest publicly traded holder of the digital asset.
Funding and Stock Programs
The purchases were supported through proceeds from Strategy’s at-the-market preferred stock programs. The company issued 179,687 of its Series A Perpetual Strike (STRK) at a face value of $18.0 million and net proceeds of $19.3 million between August 11, 2020, and August 17, 2020.
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It also sold 162,670 shares of Series A Perpetual Strife (STRF) at a face value of $16.3 million and a net value of $19.0 million, and 140,789 shares of Series A Perpetual Stride (STRD), which raised a face value of $14.1 million and a net of $12.1 million.
No sales were made under the Common ATM or the variable rate Series A Perpetual Stretch (STRC) during the same period. As of August 17, the Common shares had remaining capacity of $17.04 billion, STRK of $20.43 billion, STRF of $1.85 billion, STRD of $4.17 billion, and STRC of $4.20 billion.
STRK has a coupon of 8.00 percent, and STRF and STRD have a coupon of 10.00 percent as an offering of perpetual preferred. STRC is a variable rate, cumulative fixed-to-floating preferred stock that will be issued to trade at a price of approximately $100 par with a floating rate.
Long-Term Accumulation Strategy
Strategy’s financing stack is heavily structured around its preferred stock programs. The company has in place a $21 billion ATM for STRK, $2.1 billion capacity for STRF, and $4.2 billion for STRD. These are part of its 42/42 strategy, where it aims to spend $84 billion on buying bitcoin in the form of equity and convertible notes by 2027. This is an extension of the previous 21/21 plan, as equity capacity has been attained.
Five years after its initial bitcoin purchase, Strategy has acquired holdings of $72.4 billion at current market prices. This was purchased at a net expenditure of around $46.2 billion at an average price of $73,320 per coin.
The company’s aggressive approach has left it with paper gains of roughly $26.2 billion. Its structured financing and long-term commitment highlight an ongoing push to cement its status as the largest corporate holder of bitcoin.
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