Strategy is back in the Bitcoin race with the purchase of 8,178 BTC for $835.6 million, funded through preferred shares stepping in amidst MSTR’s stock decline.
Strategy buys over $800 million worth of Bitcoin
Massive bitcoin purchases are back in the spotlight at Strategy. After a period marked by more modest acquisitions, Michael Saylor revs up the machine with a volume reminiscent of the group’s major accumulation phases. The company added 8,178 BTC in just one week for a total amount of $835.6 million, at an average price of around $102,171 per unit. This move repositions Strategy on an offensive trajectory despite a stock market context that complicates its traditional financing options.
A financing focus on preferred shares
The drop in Strategy’s stock, down about 56% over four months, has closed the door to common stock offerings. The management team has therefore redirected its fundraising strategy towards preferred shares, a tool that has become central in its financial policy. The STRE issuance saw significant interest from European investors and raised nearly $715 million in early November. This momentum was supplemented by the series STRC, called ‘Stretch’, which added an additional $131.4 million.
This hybrid financing allows Strategy to pursue its unique goal without massively diluting existing shareholders. The use of preferred shares offers appreciable flexibility in a context where the stock valuation struggles to reflect the long-term bitcoin-oriented strategy.
Reserves reaching a historic level
With this new operation, reserves now reach 649,870 BTC. The total acquisition cost amounts to about $48.37 billion, equivalent to an average price of $74,433 per bitcoin held. Strategy more than ever establishes itself as the largest institutional holder of BTC in the world, consolidating a position built on several years of methodical purchases.
mNAV: A reduced gap between book value and stock value
The MSTR stock is trading around $199 this Monday, driving mNAV below 1: the company’s value is lower than that of its bitcoin stock. This compression complicates any fundraising through common shares as it would result in too significant dilution. The choice of financing through preferred shares appears as a direct response to this gap between accumulation strategy and market perception.
The situation highlights a recurring paradox for Strategy: the more the company strengthens its exposure to bitcoin, the more its ability to raise funds depends on market confidence in its vision. Despite this tension, the company maintains an acquisition pace that contrasts with the prevailing volatility.
Bitcoin temporarily under pressure
Bitcoin is trading around $94,000, slightly down from the previous week’s end, which already marked a significant drop. Strategy’s timing comes in an environment where the price remains well above the group’s average acquisition cost, reinforcing Michael Saylor’s conviction about the long-term value of the asset.
The company reaffirms a clear line: to continue transforming its balance sheet into a digital store of value, regardless of short-term fluctuations and pressures from the stock market.
