Bitcoin News Today: Michael Saylor's Bitcoin Bet: Corporate Gold Rush Heats Up

Michael Saylor’s Strategy, the world’s largest publicly traded company with Bitcoin holdings, added 4,048 BTC for $449.3 million in late August, bringing its total Bitcoin purchases for the month to 7,714 BTC. The latest acquisition was made at an average price of $110,981 per BTC, according to a filing with the US Securities and Exchange Commission (SEC) [1]. This purchase follows additional smaller acquisitions in early August, including 430 BTC and 155 BTC [1].

Strategy’s Bitcoin purchases continue to grow its total holdings, which now stand at 636,505 BTC, purchased for approximately $46.95 billion at an average price of $73,765 per coin [2]. This represents a significant portion of Bitcoin’s total supply—over 3%—and implies substantial paper gains, given Bitcoin’s current market value of around $70 billion [2]. The firm’s aggressive acquisition strategy is funded through a mix of equity and debt instruments, including the issuance of Class A common stock (MSTR) and perpetual preferred shares (STRK, STRF, STRD) [2].

The company has been transparent about its capital allocation, with the latest purchases financed by at-the-market (ATM) sales of its various shares. For example, it sold 1,237,000 MSTR shares for $425.3 million and 199,509 STRK shares for approximately $19 million, among others [2]. Strategy’s preferred shares vary in risk and reward profiles: STRK is convertible with an 8% non-cumulative dividend, STRF is non-convertible with a 10% cumulative dividend, and STRD is non-convertible with a 10% non-cumulative dividend [2].

The company’s capital-raising efforts are part of its broader “42/42” plan, which targets a total capital raise of $84 billion through 2027 for Bitcoin acquisitions, up from the original $42 billion “21/21” plan. Strategy has also signaled its willingness to issue common equity even when its market cap to net asset value (mNAV) ratio is below 2.5x, provided it deems the issuance “advantageous to the company” [2]. This flexibility has drawn scrutiny from some investors who view the strategy as potentially dilutive.

Bitcoin’s price has remained volatile, slipping below $108,000 after briefly rising above $113,000 earlier in the month [1]. Despite this, Strategy’s co-founder and executive chairman, Michael Saylor, has reiterated his bullish stance, stating in a public update that “Bitcoin is still on sale.” This sentiment reflects the company’s long-term investment philosophy, which is designed to withstand significant price declines [2]. Saylor has previously stated that Strategy’s capital structure can endure a 90% drop in Bitcoin’s price over four to five years, though he acknowledged that shareholders would still face losses [2].

The corporate Bitcoin accumulation race is intensifying, with 163 public companies now holding Bitcoin in some capacity, according to Bitcoin Treasuries data [2]. Strategy remains the largest, followed by companies like MARA and Riot Platforms, which hold 50,639 BTC and 15,000 BTC respectively. While the pace of Strategy’s Bitcoin acquisitions has slowed compared to July—when it purchased 31,466 BTC—the company remains committed to its mission of accumulating Bitcoin as a strategic asset [1].

Source: [1] Strategy adds $449M in Bitcoin, raising August total to 7.7K ... (https://cointelegraph.com/news/michael-saylor-strategy-buys-4048-btc-bitcoin-holdings-636505) [2] 'Bitcoin is still on sale': Strategy buys another ... (https://www.theblock.co/post/368902/bitcoin-is-still-on-sale-michael-saylor-strategy-buys-more-btc)