Strategy buys bitcoins for $449.3m, total holdings reach 636,505

Strategy, a bitcoin treasury company formerly known as MicroStrategy, has acquired 4,048 more BTC for about US$449.3 million between August 26 and September 1, according to a recent SEC filing.

The purchase brings Strategy’s total holdings to 636,505 BTC, valued at around US$70 billion at current prices.

The company funded the latest acquisitions through proceeds from at-the-market sales of its class A common stock (MSTR) and several perpetual preferred stocks, including STRK, STRF, and STRD.

The company’s co-founder Michael Saylor said the average purchase price for its bitcoin holdings is US$73,765 per BTC, with total costs of about US$47 billion.

Strategy previously said it would not issue common equity below a 2.5x market cap to net asset value ratio, but later clarified it may do so if considered beneficial for its capital strategy.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Corporate bitcoin accumulation is reaching unprecedented concentration levels

Strategy’s latest purchase brings their total holdings to over 636,500 BTC, representing more than 3% of Bitcoin’s entire 21 million coin supply1.

This concentration becomes more significant when viewed alongside other major institutional holders. The U.S. government holds approximately 213,300 BTC while the Mt. Gox trustee controls around 139,000 BTC2.

Recent data shows major investment firms purchased 140,000 BTC in just two months, nearly matching Bitcoin’s annual mining output of 164,000 coins3.

This trend reflects broader corporate treasury adoption, with analysts predicting public companies could allocate up to $330 billion to Bitcoin over the next five years4.

The concentration among relatively few large holders creates a market dynamic where individual institutional decisions can significantly impact Bitcoin’s price and availability for other investors.

2️⃣ Complex funding structures enable continuous bitcoin accumulation despite market conditions

Strategy’s $449 million purchase was funded through sales of multiple financial instruments, including common stock MSTR and three different perpetual preferred stocks with varying risk profiles1.

Their preferred stocks offer different terms: STRD provides 10% non-cumulative dividends with the highest risk-reward, STRK offers 8% dividends with conversion rights, and STRF delivers 10% cumulative dividends as the most conservative option1.