Strategy Pushes Bitcoin Holdings Past 636K BTC With Latest $450M Buy
Strategy (MSTR), led by Michael Saylor, continued its aggressive bitcoin (BTC) accumulation last week, purchasing 4,048 coins for just under $450 million. The latest tranche lifts the company’s total holdings to 636,505 BTC, valued at close to $70 billion with bitcoin trading around $110,785.
The average purchase price was $110,981 per coin, according to the company. Most of the funding came from common stock issuance, with smaller contributions from preferred share sales.
The decision to rely on equity financing has stirred controversy. Saylor’s team previously committed not to issue new shares when Strategy’s market-to-net-asset value (mNAV) ratio fell below 2.5x. With the stock’s recent decline dragging the mNAV closer to 1.5x and weak demand for preferred stock or convertible debt, the company opted to move forward regardless in order to maintain its bitcoin buying pace.
Critics argue that issuing common shares so close to net asset value risks diluting existing investors. Still, the company remains steadfast in prioritizing bitcoin accumulation as its core strategy.
MSTR shares were down slightly in premarket trading on Tuesday.
