Michael Saylor Strategy added 520 Bitcoin to its massive holdings this week, spending $34.9 million at an average price of $67,068 per BTC. The company also parked $300 million into its USD reserve, bringing that cushion to $1.4 billion.
The purchases, disclosed in an SEC 8-K filing on Monday, bring Strategy total Bitcoin holdings to 847,363 BTC. That is worth well north of $50 billion at current prices.
Here is how they paid for it: Strategy raised $335.5 million by selling MSTR shares through its at-the-market equity program, then split the proceeds between the BTC purchase and the USD reserve. The reserve is meant to support dividend payments and debt obligations on the company perpetual preferred stock.
The timing is noteworthy. STRC, Strategy perpetual preferred stock, recently dipped below $90. It was designed to trade near $100. MSTR itself dropped 3.46% to $112.53 ahead of last week market holiday.
Bitcoin advocate Samson Mow argued that STRC has a self-repairing mechanism. When the price drops below $100, the company stops issuing new shares through the ATM program, which limits supply. Lower prices also increase the effective yield for buyers, which can push demand back up.
Strategy cumulative Bitcoin purchases now total $64.1 billion, giving the company an average acquisition cost of $75,651 per BTC. The company signaled it plans to keep replenishing the USD reserve over time based on market conditions.
Whether this model remains sustainable at current price levels is the big question everyone is asking.
