Strategy (MSTR), the corporate Bitcoin treasury formerly known as MicroStrategy, saw its shares climb 2% on Monday after disclosing another purchase of the cryptocurrency. The acquisition brings the company's total holdings to a record 848,000 BTC, representing more than 4% of Bitcoin's 21 million supply cap.
According to a filing with the U.S. Securities and Exchange Commission, Strategy acquired 334 BTC for approximately $28.7 million between September 28 and October 4. The average price per Bitcoin in this latest round was $85,838.80. With Bitcoin trading near current levels, the company's total holdings are valued at roughly $73 billion, implying paper gains of about $9 billion against an average acquisition price of $75,440.70 per coin.
Funding the Purchase
The purchase was financed through a combination of proceeds from sales of Class A common stock and the company's USD Cash reserve. During the previous week, Strategy sold 92,894 MSTR shares, generating approximately $15.7 million. As of October 4, the company had $18.8 billion worth of MSTR shares available for issuance under its at-the-market program.
The remaining $13 million of the acquisition was funded from USD Cash holdings. Additionally, Strategy repurchased 1.77 million STRC preferred shares last week for around $176.3 million. The company reported that its USD Reserve stood at $4.88 billion as of October 4, while USD Cash holdings were $833.4 million. It also used $142.5 million from the USD Reserve to cover preferred-stock dividends and interest on outstanding debt.
Q3 Digital-Asset Gain Estimate
Strategy also provided an early estimate of its third-quarter digital-asset performance, projecting a $20.91 billion gain on its Bitcoin holdings. The carrying value of the cryptocurrency on its balance sheet was $70.82 billion as of September 30. This estimate reflects the accounting treatment that allows the company to recognize gains when the market price exceeds the carrying value.
Executive chairman Michael Saylor disclosed the updated holdings and average purchase price, and posted a Bitcoin acquisition tracker chart on X with the caption “More orange than ever.” Similar posts have historically preceded acquisition announcements, though the company's purchasing cadence has varied in recent periods.
Market Context
Despite the latest purchases, both Strategy stock and Bitcoin remain below their levels from a year ago. MSTR has gained 3% year to date but has fallen more than 50% over the past 12 months. Bitcoin has declined around 2% year to date and is down approximately 30% over the past year. The company remains the largest public-company Bitcoin holder, with data from Bitcoin Treasuries showing that 196 public companies have adopted some form of Bitcoin acquisition model.
This article is for informational purposes only and does not constitute financial advice.
