- Strategy loads up 4,048 Bitcoin for $449.3 million from August 26 to September 1.
- The company currently maintains 636,505 BTC in its treasury.
Last Sunday, Strategy (formerly MicroStrategy) Executive Chair Michael Saylor said, “Bitcoin (BTC) is still on sale.” His social media post came with a screencap of their company’s BTC purchase history on the Saylor Tracker website.
These posts often preceded the company’s BTC purchase announcement every Monday. For some reason, Strategy missed the announcement that day, which gave the impression that it may not have proceeded with its regular BTC acquisitions last week.
It turned out that the company only pushed its much-awaited announcement this Tuesday.
Strategy’s Latest Bitcoin Purchase
Today, Strategy revealed through a Form 8-K filing at the US Securities and Exchange Commission (SEC) that it has acquired 4,048 BTC from August 26 to September 1. Its latest batch of transactions cost $449.3 million, translating to an average purchase price of $110,891 per BTC.
The move raises Strategy’s portfolio to 636,505 BTC, which makes up over 3.03% of Bitcoin’s 21 million supply. It also improves the BTC yield of the business intelligence solutions provider to 25.7% year-to-date.
BTC yield is a key performance indicator (KPI) Strategy popularized. It is now being applied by other public companies with Bitcoin treasuries like Metaplanet and Semler Scientific to measure their BTC holdings relative to their diluted shares.
So far, the company has already spent $46.95 billion stacking up Bitcoin. The numbers equate to a dollar cost average (DCA) of $73,765 per BTC. Interestingly, its DCA only rose by $238 since last week’s update, exhibiting its measured approach in accumulating Bitcoin.
Increase in Dividend Rate
Coinciding with the latest developments, Saylor has spiced up Strategy’s offerings with an enticing increase in the annual dividend of its series A perpetual stretch preferred stock (STRC). This jacks up the figures from 9% to 10% to incentivize investors.
Strategy launched STRC last July 31 to raise more capital for Bitcoin accumulation. Each share has a par value of $0.001, and is overcollateralized with BTC at 5:1. This means that the company maintains five dollars’ worth of BTC for every dollar of STRC share.
As of its recent disclosure, the business has $4.2 billion in STRC shares, which it sets aside for future issuance. This adds to around $1.8 billion outstanding shares in perpetual strife preferred stock (STRF), $20.39 billion in perpetual strike preferred stock (STRK), and $16.3 billion in common stock (MSTR). All these indicate that the company has more shares left to finance its Bitcoin-centric venture as it targets capturing 1 million BTC or 4.76% of Bitcoin’s total supply in the long term.
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