Strategy, formerly known as MicroStrategy and known for its institutional Bitcoin investments, continues to accumulate Bitcoin without slowing down despite the volatility in the cryptocurrency markets. According to the 8-K filing with the US Securities and Exchange Commission (SEC), the company purchased 245 more Bitcoins (BTC) for approximately $26 million between June 16-22. The average purchase price was recorded as $105,856. With this latest investment, Strategy's total Bitcoin assets reached 592,345 BTC. This amount corresponds to 2.8 percent of Bitcoin, which has a maximum supply of 21 million. It is stated that the company acquired these assets at a total cost of $41.9 billion, and the average purchase price was $70,681. When evaluated at today's market prices, Strategy's BTC portfolio has reached a value of over $60 billion, with an unrealized profit of approximately $18 billion.
Funding provided through STRK and STRF sales
Strategy’s acquisition was financed with proceeds from the company’s perpetual preferred stock. The company sold 166,566 shares of STRK (Strike) for $17.4 million, and 84,354 shares of STRF (Strife) for $8.7 million.
There is currently an additional $20.6 billion in STRK sales program, and approximately $1.97 billion in STRF sales. In addition, no sales of the company’s Class A common stock, which trades under the symbol MSTR, were made last week, but there is a potential $18.6 billion in funding available through this channel.
Strategy’s long-term goals are also significant. The company aims to raise a total of $84 billion in capital by 2027 with its strategic plan called “42/42.” The initial target was set at $42 billion, but that target was doubled due to strong demand and strategic growth.
Strategy’s newest preferred stock, STRD, offers “high yield potential” for shareholders, according to TD Cowen analysts. The stock pays a fixed dividend of 10 percent annually but is not convertible. While STRK offers a balanced investment with an 8 percent fixed dividend and a convertible structure, STRF is a more conservative option offering fixed and cumulative dividends of 10 percent.
Saylor’s new buy signal: “Nothing stops this orange”
Strategy co-founder and chairman Michael Saylor shared an updated image of the company’s Bitcoin portfolio on social media on Sunday, using the phrase “Nothing Stops This Orange.” The message was interpreted as a sign of a new buy, based on similar statements from Saylor in the past. And many people were right in their prediction.
The institutional Bitcoin model is spreading
The “Bitcoin treasury” model pioneered by Strategy is increasingly being adopted by companies. Names such as Metaplanet, Semler Scientific, Trump Media and even GameStop have also started to follow suit. On the other hand, Strategy’s market value has reached $101 billion, trading well above the company’s net asset value. While this has caused concern among some investors, its low debt ratio and lack of a payment obligation until 2028 keep the company’s financial structure strong.
MSTR stock closed up 0.2 percent last week at $369.70. However, Bitcoin’s 4.9 percent decline following the conflicts in the Middle East and the US attacks on Iran caused MSTR shares to fall 1.9 percent in the premarket on Monday. Still, the stock has gained 23.2 percent since the beginning of the year.
