Strategy buys 2,543 BTC in one day, now holds 3.9% of supply

Strategy, the publicly traded company formerly known as MicroStrategy, purchased about 2,543 Bitcoin in a single day using capital from its STRC preferred-stock financing. The transaction increased the company’s disclosed holdings to 818,869 BTC, roughly 3.9% of Bitcoin’s 21 million capped supply.

The company raises cash by selling common shares and preferred stock and converts the proceeds into Bitcoin. In a recent example of that approach, the firm sold 663,450 shares for $108.8 million. The STRC preferred shares carry dividend obligations that the company must meet.

Company filings show Strategy has set aside a $2.19 billion reserve to support preferred dividends and debt interest payments while it continues to buy Bitcoin.

Over recent months, the firm’s disclosed Bitcoin holdings rose from 672,497 BTC to 818,869 BTC. Reported average purchase prices across several recent acquisitions ranged from about $67,700 to $88,568 per BTC, with other reported averages of $80,340 and $78,815 at different points in the program.

The firm began buying Bitcoin in August 2020 under the leadership of Michael Saylor and has shifted much of its capital allocation toward building a Bitcoin treasury while continuing to operate its software business. No other publicly traded company holds a comparable volume of Bitcoin on its balance sheet.

Strategy funds its purchases by issuing equity and preferred securities. When Bitcoin’s market value rises, the value of the treasury increases and the company can access capital markets on more favorable terms. If Bitcoin’s market value falls, the treasury’s market value would decline and future equity or preferred issuances could be more dilutive to holders while dividend and interest obligations remain payable.

The recent one-day acquisition is part of an ongoing pattern of accumulation financed through securities offerings and supported by the company’s cash reserve for coverage of dividend and interest obligations.