Bitcoin-focused institutional investment firm Strategy purchased approximately $18.8 million worth of additional Bitcoin (BTC) between October 13–19.
According to its 8-K report filed with the US Securities and Exchange Commission (SEC), the company made purchases at an average price of $112,051 per BTC.
With the latest purchase, Strategy’s total bitcoin holdings reach 640,418 BTC, worth approximately $71.1 billion at current prices and representing more than 3% of Bitcoin’s total supply.
The company's co-founder and chairman, Michael Saylor, stated that the total acquisition cost was $47.4 billion, with an average unit cost of $74,010. This translates to a paper gain of approximately $23.7 billion at current prices.
Funding and Future Plans
The new bitcoin purchases were funded by proceeds from the company's perpetual preferred stock sales programs, STRK, STRF, and STRD. In addition to these programs, the strategy aims to accumulate bitcoin through additional stock and convertible bond issuances through 2027 under its “42/42 Plan,” which totals $84 billion.
The company's share classes are structured according to different risk profiles:
- •STRK: Convertible, 8% dividend rate, open to equity returns.
- •STRF: Non-convertible, 10% cumulative dividend rate, most conservative class.
- •STRD: Non-convertible, 10% dividend rate but non-cumulative, has the highest risk-return profile.
- •STRC: Variable rate, monthly dividend payment, designed to remain close to par value.
Market Position and Outlook
Strategy maintains its position as the world's largest institutional Bitcoin investor, with market observers characterizing the company's aggressive capital strategy as one of Wall Street's best long-term Bitcoin theses.