Strategy increased its Bitcoin holdings last week, acquiring 13,627 BTC for approximately $1.25 billion. According to an 8-K filing with the Securities and Exchange Commission, the purchases were made between January 5 and January 11 at an average price of $91,519 per coin.
This latest move brings the company’s total treasury to 687,410 BTC, which accounts for more than 3% of the total 21 million Bitcoin supply.
Executive Chairman Michael Saylor confirmed that the total portfolio was acquired for approximately $51.8 billion at an average price of $75,353 per coin, meaning the company currently holds roughly $10.5 billion in unrealized paper gains.
The capital for these acquisitions was raised through the aggressive sale of the company’s Class A common stock and its various perpetual preferred stock offerings. Specifically, the firm generated $1.13 billion from selling MSTR shares and an additional $119.1 million from its “Stretch” preferred stock.
These efforts are part of a broader “42/42” plan, a strategy aimed at raising $84 billion over three years to fund further Bitcoin purchases.
To ensure financial stability during this expansion, the company also bolstered its USD reserve to $2.25 billion to cover debt interest and dividends for its complex tiered stock structure, which ranges from conservative cumulative shares to high-risk non-convertible options.
Despite the massive accumulation of assets, the company is facing a challenging market environment where its stock price has decoupled from the value of its holdings. The firm’s market-cap-to-net-asset-value ratio has fallen to 0.81, indicating that investors are currently valuing the company at a discount compared to the market value of its Bitcoin.
This trend of contracting premiums is visible across many of the 194 public companies that have adopted Bitcoin treasury models, including major players like MARA and Coinbase.
