Strategy acquired an additional 3,081 BTC last week, as revealed in an SEC filing. This purchase, financed through equity sales, increases its total holdings to 632,457 Bitcoins, valued at over $70 billion based on the current market rate.
Summary
- Strategy has added 3,081 BTC at a cost of $357 million, raising its total to 632,457 BTC valued at $70 billion.
- The acquisition, funded through equity sales, was reported in an SEC filing.
- The reduced buying rate in August contrasts with last month’s aggressive $3.6 billion investment.
The Tysons Corner, Virginia-based business intelligence firm stated that it purchased the additional Bitcoin (BTC) from August 18 to August 24, utilizing net proceeds of about $357 million raised through its at-the-market equity offering programs.
As detailed in the Form 8-K submitted to the Securities and Exchange Commission on August 25, the purchase was made at an average price of $115,829 per Bitcoin, bringing the company’s total assets to an impressive 632,457 BTC, currently valued at over $70 billion.
Slower buying pace, higher yield
The recent $357 million investment marks Strategy’s third Bitcoin acquisition this month. This follows two smaller purchases earlier in August: one of 430 BTC and another of 155 BTC. The company’s total acquisitions for the month now stand at 3,666 BTC, a significant slow-down from the aggressive 31,466 BTC bought in July.
This trend indicates a more strategic, possibly price-sensitive, approach in the current market cycle compared to the previous months of relentless buying. Nevertheless, even with this slower pace, Strategy’s internal performance metrics continue to show improvement.
According to Strategy Executive Chairman and former CEO Michael Saylor, the company’s proprietary Bitcoin Yield metric—a key performance indicator measuring the percentage change in the ratio of its total Bitcoin holdings to its assumed diluted shares outstanding—has increased to 25.4% year-to-date.
Importantly, Strategy recently adjusted its full-year target for this metric upward from 25% to 30% and revised its annual Bitcoin gain target from $15 billion to $20 billion, reflecting confidence in its ongoing operational model.
Meanwhile, with a market capitalization of around $112 billion and Bitcoin holdings valued at approximately $70 billion, the company’s stock trades at a nearly 60% premium over its net asset value.
This enables the company to issue new shares at prices exceeding the Bitcoin they intend to acquire, creating a beneficial cycle where the proceeds from these equity sales are reinvested into purchasing more BTC, thereby bolstering the company’s valuation and capacity to raise additional funds.
