Defying Stock Slide, Strategy's Bitcoin Hoard Hits $71.5B as S&P Exit Looms

Strategy Inc., the Virginia-based company formerly known as MicroStrategy, has further solidified its position as the largest public corporate holder of Bitcoin by acquiring an additional 1,955 BTC for $217.4 million at an average price of $111,196 per coin. This purchase, announced Monday, brings the company’s total Bitcoin holdings to 638,460 BTC, valued at approximately $71.5 billion at current prices. The move follows the company’s exclusion from the S&P 500 index in favor of Robinhood, which triggered a 3% decline in Strategy’s stock price in after-hours trading. Despite the setback, Bitcoin’s price has remained resilient, trading near $112,000 and demonstrating a year-to-date yield of 25.8% for Strategy shareholders.

The latest acquisition was funded through a combination of at-the-market (ATM) equity offerings and preferred stock sales. Between September 2-7, Strategy raised $200.5 million in net proceeds by selling 591,606 common shares and an additional $16.9 million via preferred stock transactions. This approach aligns with the company’s broader capital deployment strategy, which emphasizes liquidity management and continued Bitcoin accumulation. The firm’s total Bitcoin holdings now represent over 3% of the cryptocurrency’s total supply, with a cost basis of approximately $47.3 billion and unrealized gains exceeding $25 billion.

Strategy’s aggressive Bitcoin strategy is underpinned by its “42/42” initiative, which aims to raise $84 billion by 2027 to expand its digital asset reserves. This expanded plan, an evolution of the original “21/21” strategy, leverages four distinct perpetual preferred stock classes—STRK, STRC, STRF, and STRD—each with unique risk-reward profiles. STRD, for instance, offers a 10% non-cumulative dividend without conversion rights, while STRK provides an 8% non-cumulative dividend with equity upside potential. The preferred stock structure enables the company to maintain flexible liquidity without relying on debt, a model analysts argue strengthens its ability to weather market volatility.

The company’s recent stock performance reflects mixed investor sentiment. Shares of Strategy (MSTR) closed at $335.87 on Monday, a 2.53% increase, but dipped to $329.20 in pre-market trading following the latest purchase announcement. Meanwhile, other Bitcoin treasury companies, such as Japan’s Metaplanet Inc. and El Salvador, have also continued accumulating Bitcoin, adding 136 BTC and 21 BTC respectively in recent days. These collective efforts have pushed corporate Bitcoin holdings past the 1 million BTC threshold, creating a robust demand base for the asset.

Analysts at QCP Capital have highlighted Bitcoin’s resilience amid macroeconomic headwinds, noting that the cryptocurrency has maintained levels above $110,000 despite Strategy’s S&P 500 exclusion. This stability underscores the growing institutional confidence in Bitcoin as a strategic reserve asset. Strategy’s CEO, Michael Saylor, has consistently advocated for Bitcoin’s role in corporate treasuries, a stance reinforced by the company’s sustained purchasing activity and innovative capital structure. As the firm continues its Bitcoin-centric strategy, its actions are likely to influence broader market dynamics and corporate adoption trends in the digital asset space.