Strategy Accumulates 601,550 BTC Valued at $73 Billion

Strategy, a prominent Bitcoin holder, has significantly increased its Bitcoin holdings, now owning 601,550 BTC valued at approximately $73 billion. This acquisition represents over 2.8% of the total Bitcoin supply, making Strategy the largest public holder of Bitcoin. The firm's aggressive buying strategy is part of a broader plan to accumulate $84 billion worth of Bitcoin by 2027, utilizing stock sales and preferred shares to fund these purchases.

The latest acquisition of 4,225 BTC was made at an average price of $111,827 per coin, bringing the total holdings to 601,550 BTC. The average purchase price across all holdings stands at $71,268, resulting in approximately $30 billion in paper profits. Michael Saylor, co-founder of Strategy, confirmed these figures through a company statement, highlighting the firm's commitment to its Bitcoin accumulation strategy.

To sustain this aggressive buying strategy, Strategy has employed various funding mechanisms. The firm raised $330.9 million through the sale of 797,008 MSTR shares and introduced three risk-tiered preferred stocks: STRK, STRF, and STRD. Each of these preferred stocks offers different dividend structures and risk profiles, catering to a diverse range of investors. STRK provides an 8% non-cumulative dividend with conversion rights, STRF offers a 10% cumulative dividend and is non-convertible, while STRD carries the highest risk but offers a 10% non-cumulative return, appealing to more aggressive investors.

These diverse funding tools have allowed Strategy to maintain its rapid pace of Bitcoin accumulation. The firm has over $44.3 billion available across all preferred and common equity ATM programs, supporting its expanded “42/42” capital strategy. This strategy aims to secure $84 billion in total funding for Bitcoin purchases by 2027, demonstrating Strategy's long-term commitment to Bitcoin.

Despite a slight slowdown in purchases in recent weeks, Strategy's treasury remains robust. The firm paused buying between June 30 and July 6, aligning with Q2 results that showed $14.05 billion in unrealized BTC gains. This followed a Q1 loss of $5.91 billion. However, Strategy's low debt load and the absence of major payments until 2028 provide a strong financial foundation, allowing the firm to withstand market shocks. Saylor expressed confidence that the structure could endure a prolonged 90% drop in Bitcoin's value.

Strategy's market capitalization stands at $118.8 billion, trading at a premium to its Bitcoin net asset value. While some investors express concerns about the valuation, others see strength in the firm's long-term capital positioning. Strategy leads a growing list of 141 public Bitcoin-holding firms, with competitors like MARA, Twenty One, Riot, and Metaplanet trailing far behind. Notably, Metaplanet recently added 797 BTC, now holding 16,352 BTC, but still significantly behind Strategy's holdings.