Strategy Resumes Bitcoin Purchases with $370 Million Acquisition

Strategy, the largest corporate holder of Bitcoin, has resumed its accumulation strategy with the acquisition of 4,603 Bitcoin for $370 million, according to a Monday Form 8-K filing with the S. Securities and Exchange Commission. The purchase, which took place at an average price of $80,318 per Bitcoin, brings the company's total treasury to 845,050 BTC. Cumulative acquisitions now stand at $63.3 billion, with an average cost of $75,413 per Bitcoin.

The move marks Strategy's first corporate Bitcoin acquisition since mid-June, when it purchased 1,587 BTC for roughly $100 million. The resumption was signaled on Sunday by Michael Saylor, Strategy's co-founder and executive chairman, who posted "We're Back" on X, a message consistent with his history of cryptic weekend teasers ahead of the company's treasury announcements.

Funding and Balance Sheet Moves

The acquisition was funded using net proceeds from a $602 million MSTR common stock sale. In addition to the Bitcoin purchase, the company allocated $30 million of the proceeds to increase its USD cash reserve and $151.8 million to repurchase its preferred STRC stock, according to the filing.

These moves come as Strategy navigates the mechanics of its funding model. The STRC preferred stock, one of the company's primary vehicles for funding Bitcoin accumulation, traded at $97.33 in pre-market activity on Monday, a 2.67% discount to its $100 par value, according to Yahoo Finance data. Trading below par can constrain the company's ability to raise capital through STRC sales, and may necessitate a further increase in the nominal dividend rate to attract buyers and protect the stock's price.

In its June 29 8-K filing, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends and increased the annual dividend rate on its STRC preferred stock to 12%. The company also disclosed the sale of 32 Bitcoin in early June, its first reported Bitcoin sale since a 2022 tax-loss transaction.

Market Reaction

Nasdaq-traded MSTR was up less than 1% in Monday's pre-market activity, following a drop of more than 7% on Friday. STRC gained 0.44% in pre-market trading, according to Yahoo Finance data.