Strategy (formerly MicroStrategy), an institutional investment firm specializing in Bitcoin, purchased approximately $18.8 million worth of additional Bitcoin (BTC) between October 13th and 19th.
Strategy’s Bitcoin holdings reach 640,418 BTC, surpassing $71.1 billion
According to its 8-K filing with the U.S. Securities and Exchange Commission (SEC), the company made purchases at an average price of $112,051 per BTC.
This purchase brings Strategy’s total Bitcoin holdings to 640,418 BTC, worth approximately $71.1 billion at current prices and more than 3% of the total Bitcoin supply.
Michael Saylor, the company’s co-founder and chairman, said the total acquisition price was $47.4 billion, with an average unit price of $74,010. This equates to a paper profit of approximately $23.7 billion at current prices.
The new Bitcoin purchases were funded by proceeds from the company’s perpetual preferred stock sales programs, STRK, STRF, and STRD. In addition to these programs, the strategy aims to accumulate Bitcoin through additional equity and convertible bond issuance through 2027 under the $84 billion 42/42 Plan.
The company’s share classes are structured according to different risk profiles.
STRK: Convertible bond, 8% dividend rate, open to stock returns.
STRF: Non-convertible, 10% cumulative dividend rate, most conservative class.
STRD: Non-convertible, 10% dividend rate but non-cumulative, with the highest risk and return profile.
STRC: Floating rate, monthly dividend payments designed to remain close to par.
Strategy remains the world’s largest institutional investor in Bitcoin, with market observers characterizing its aggressive capital strategy as one of Wall Street’s best long-term Bitcoin theories.
*This is not investment advice.
