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Strategy Purchases $51.4M in Bitcoin Through Preferred Stock Offerings
Strategy has once again demonstrated its unwavering commitment to Bitcoin accumulation, purchasing an additional 430 BTC worth $51.4 million over the past week. This latest acquisition comes despite CEO Michael Saylor’s recent statements about limiting equity dilution unless shares traded below specific thresholds.
Relaxing Previous Constraints
The company appears to be softening its previously strict stance on share issuance. Just weeks ago, Saylor indicated that Strategy would avoid further diluting its equity unless shares traded below 2.5 times the value of its Bitcoin holdings. However, the firm has now added flexibility to this constraint, stating it may offer new shares “when otherwise deemed advantageous to the company” even when its market Net Asset Value (mNAV) falls below the 2.5x threshold.
Strategic Funding Approach
The recent Bitcoin purchases were “funded primarily” through preferred stock offerings rather than common MSTR shares. The company utilized approximately $19 million worth of STRK preferred stock, $18 million worth of STRF preferred stock, and $12 million worth of STRD preferred stock to finance the acquisition.
Analyst Outlook Remains Bullish
TD Cowen maintains its $680 price target for MSTR, currently trading at $363. The investment firm projects that Strategy will accumulate 4.3% of Bitcoin’s total supply by the end of 2027, equivalent to 900,000 coins, while predicting Bitcoin will reach $232,000.
Record Financial Performance
Strategy recently reported impressive quarterly earnings, posting record net income of $10 billion and increasing its “BTC $ Gain” metric from $15 billion to $20 billion. The company currently holds over 3% of the total Bitcoin supply, solidifying its position as the world’s largest corporate Bitcoin holder.
The strategy reflects what TD Cowen describes as “a new kind of firm” that converts market appetite for volatility into Bitcoin accumulation opportunities.
