Strategy (formerly MicroStrategy), one of the largest players in the Bitcoin treasuries space, launched another massive acquisition wave in mid-November. The company announced the purchase of 8,178 BTC between November 10 and 16. The total purchases amounted to approximately $835.6 million, with an average cost of $102,171. With this transaction, the company's total Bitcoin holdings increased to 649,870 BTC, worth approximately $61.7 billion at current prices.
Michael Saylor, the company's largest shareholder and chairman, stated in a statement following the latest acquisition that their average BTC cost was $74,433. Strategy's current position represents more than 3% of the Bitcoin supply. The company's on-paper return at the current price range is approximately $13.3 billion.
The new purchases were funded by funds from Strategy's perpetual preferred stock offerings. These instruments, codenamed STRK, STRF, STRC, and STRE, form the backbone of the company's massive Bitcoin acquisition strategy. STRE, in particular, stands out as the company's first euro-denominated perpetual preferred stock issue. The Strategy's total capital increase target is $84 billion by 2027. This target was updated by doubling the company's previous "21/21" plan.
This purchase, which Saylor highlighted last week with his "₿ig week" message, represents the largest BTC addition since the summer. Just a few days earlier, the company had announced an additional purchase of 487 BTC. This brought the Strategy to approximately 8,600 BTC in the first half of November.
Response to selling allegations
While the number of companies adopting the Bitcoin treasury model continues to grow, most stocks in the sector appear to have suffered significant losses since the summer. The Strategy's market capitalization/net asset value (mNAV) ratio has also fallen to 0.93. Despite this, Bernstein analysts state that this decline creates a false perception that the company will sell Bitcoin, emphasizing that this is "untrue." According to the analysts, Strategy's debt level is reasonable, and its dividend obligations are manageable.
Saylor also strongly denied the sales allegations. Responding to the claim that "47,000 BTC were sold" circulating on social media last week, Saylor said this was a misconception stemming from wallet rotations on the blockchain analysis platform Arkham. "The reality is: We're not selling, we're buying. And we're buying seriously," he said.
While Strategy's share price closed last week with a sharp decline, the company is determined to maintain its aggressive buying policy despite Bitcoin price fluctuations. In Saylor's words, the company believes it has a capital structure that "can weather even a 90% Bitcoin decline over 4-5 years."
