Strategy Boosts Bitcoin Holdings to 628K BTC with $2.46B Purchase
Key Points
Strategy, previously known as MicroStrategy, has made a significant move by acquiring 21,021 Bitcoin (BTC) for approximately $2.46 billion. This marks their largest BTC purchase since March 2025.
The firm's total Bitcoin holdings now stand at 628,790 BTC, representing about 3% of the total Bitcoin supply.
The recent purchase was executed at an average price of $117,256 per BTC, capitalizing on a recent dip below this level.
This acquisition was funded by the proceeds from Strategy’s offering of 28 million shares of its new preferred perpetual stock, Stretch (STRC), raising $2.52 billion.
Market Reaction and Analysis
While the substantial investment underscores Strategy's commitment to Bitcoin, it has sparked debate among crypto analysts and investors.
Strategy utilizes perpetual preferred stock offerings, including Strike [STRK], Strife [STRF], Stride [STRD], and Stretch [STRC], to raise capital. These stocks feature conversion options linked to MSTR stock.
However, the issuance of new stock can dilute share value. Adding supply through direct sales impacts Bitcoin per share value and the premium investors earn from MSTR, known as modified net asset value (mNAV).
Analyst Perspectives
Willy Woo suggests that Strategy might be preparing for a market cycle top by lowering mNAV through at-the-market (ATM) offerings.
“My working thesis is that they are lowering mNAV via ATMs in preparation for a cycle top in coming quarters. It’s not his first bear market anymore.”
Jeff Walton, an MSTR analyst, counters that this perspective misses the broader picture. He argues that Strategy’s extensive BTC holdings (valued at $74 billion) position it as a financially strong entity.
Performance Metrics
- In July, Bitcoin outperformed MSTR by 8%.
- Year-to-date, MSTR is up 31%, while BTC has gained 26%.
Strategic Implications
Strategy's continued accumulation of Bitcoin raises questions about market dynamics and investment strategies. The firm's approach involves leveraging stock offerings to expand its BTC holdings, a strategy that balances potential dilution with the long-term value of Bitcoin.
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