'Bitcoin deserves credit': Strategy buys another 525 BTC for $60 million, bringing total holdings to 638,985 BTC

Bitcoin treasury company Strategy (formerly MicroStrategy) acquired an additional 525 BTC for approximately $60.2 million at an average price of $114,562 per bitcoin between Sept. 8 and Sept. 14, according to an 8-K filing with the Securities and Exchange Commission on Monday.

Strategy now holds a total of 638,985 BTC — worth around $73.4 billion — bought at an average price of $73,913 per bitcoin for a total cost of around $47.2 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. That's equivalent to more than 3% of Bitcoin's total 21 million supply and implies around $26 billion of paper gains.

The latest acquisitions were made using proceeds from at-the-market sales of its perpetual Strike preferred stock, STRK, perpetual Strife preferred stock, STRF, and perpetual Stride preferred stock, STRD. 

Strategy's STRK, STRC, STRF, and STRD perpetual preferred stock's respective $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion ATM programs are in addition to the firm's "42/42" plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027 — upsized from its initial $42 billion, "21/21" plan after the equity side was depleted.

STRD is non‑convertible with a 10% non‑cumulative dividend and the highest risk‑reward profile. STRK is convertible with an 8% non‑cumulative dividend, allowing equity upside. STRF is non‑convertible with a 10% cumulative dividend, making it the most conservative. STRC is a variable‑rate, cumulative preferred stock offering monthly dividends, with adjustable rates designed to keep it near par.

'Bitcoin deserves credit'

Saylor again hinted at the likelihood of another bitcoin acquisition filing ahead of time, sharing an update on Strategy's bitcoin acquisition tracker on Sunday, stating, "Bitcoin deserves credit."

Following its Q2 financial results, Strategy committed not to issue common equity if its market cap to net asset value (mNAV) ratio is below 2.5x, except for specific purposes such as paying interest on debt obligations and funding preferred equity dividends. However, to the frustration of many market participants, Strategy reneged on that guidance just two weeks later, clarifying that it will still issue MSTR below 2.5x mNAV if it deems the issuance to be "advantageous to the company" to provide greater flexibility in executing its capital markets strategy.

Last week, Strategy reported it had bought 1,955 BTC for $217.4 million, taking its total holdings to 638,460 BTC. The pace of Strategy's bitcoin buys had been slowing as it switched focus from its MSTR common stock ATM program to its perpetual preferred stocks for funding bitcoin acquisitions, but renewed MSTR issuance had resulted in larger purchases again over the past few weeks before Monday's latest announcement.

Strategy was recently snubbed for inclusion in the S&P 500 index, which instead will add AppLovin, Robinhood, and EMCOR Group. TD Cowen analysts said the decision, despite meeting all the criteria for inclusion, represented "bias against bitcoin," comparing the exclusion to prior snubs of Facebook and Tesla, although they were eventually added. Analysts at JPMorgan argued the rejection was a "blow to all crypto treasuries," warning that other index providers may also reconsider their inclusion of Strategy and similar crypto treasury firms.

The corporate bitcoin treasury trend

According to Bitcoin Treasuries data, there are now 171 public companies that have adopted some form of bitcoin acquisition model. MARA, Tether-backed Twenty One, Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company, Bullish, Metaplanet, Riot Platforms, Trump Media & Technology Group, CleanSpark, and Coinbase make up the remainder of the top 10, with 52,477 BTC, 43,514 BTC, 30,021 BTC, 24,000 BTC, 20,136 BTC, 19,239 BTC, 15,000 BTC, 12,703 BTC, and 11,776 BTC, respectively.

While the number of bitcoin treasury companies continues to increase, the value of many of the cohort's shares has decreased significantly from their summer peaks, with Strategy itself down 27% during the period.

Although its mNAV has been contracting over the past couple of months, Strategy's $94 billion market cap continues to trade at a significant premium to its bitcoin net asset value, with some investors concerned about the firm's premium valuation and its numerous bitcoin acquisition programs in general. However, certain analysts argue that with Strategy's relatively low debt levels and no payments due until 2028, the firm's leverage remains manageable. Strategy's mNAV currently sits at around 1.29x.

Saylor also remains confident in Strategy's resilience. In an interview earlier this year, he said Strategy's capital structure is designed to withstand a 90% drop in bitcoin that persists for four to five years, thanks to its mix of equity, convertible debt, and preferred instruments — though he acknowledged that shareholders would still "suffer" in such a scenario. 

MSTR closed up 1.7% on Friday at $331.44, according to The Block's Strategy price page, in a week that saw bitcoin gain 2.5%. MSTR is currently down 0.3% in pre-market trading on Monday, per TradingView, and has gained 10.4% year-to-date compared to bitcoin's 23.2%.