Strategy (MSTR), under the leadership of Michael Saylor, continued its aggressive bitcoin acquisition strategy by purchasing 4,408 BTC for just under $450 million.
This latest acquisition brings the company’s total bitcoin holdings to 636,505 coins.
Funding and stock sales
The majority of the recent bitcoin purchase was financed through the sale of common stock, with additional funds coming from the company’s preferred shares.
This approach has sparked debate, as the company had previously committed not to issue new shares if the stock’s market Net Asset Value (mNAV) ratio fell below 2.5x.
However, with the mNAV now around 1.5x and limited demand for preferred stock or convertible debt, Strategy opted to move forward with common stock sales to fund its bitcoin accumulation.
Concerns over shareholder dilution
Critics argue that issuing common stock at such a modest premium to mNAV could be dilutive to existing shareholders.
The company’s decision to break its prior pledge has drawn scrutiny, especially amid recent declines in Strategy’s stock price.
Company bitcoin holdings approach $70 billion
At the current bitcoin price of approximately $109,400, Strategy’s bitcoin stack is valued just under $70 billion.
This makes the company one of the largest public holders of bitcoin globally.
For a detailed look at Strategy’s bitcoin treasury, see the MicroStrategy historical bitcoin holdings page.
Strategy’s continued purchases underscore its commitment to bitcoin as a reserve asset, even as the funding approach evolves in response to market conditions.
