Michael Saylor has done it again. Strategy – a company that has transformed into something like a leveraged bitcoin fund – announced the acquisition of another 2,486 BTC for approximately USD 168.4 million, at an average price of USD 67,710 per coin. The trades were conducted between February 9 and February 16, as confirmed by an 8-K filing with the SEC.
Strategy’s total holdings now amount to 717,131 BTC – over 3.4% of the total bitcoin supply capped at 21 million coins. At current prices, the portfolio is worth approximately USD 48.8 billion, although the average purchase price is USD 76,027 per BTC, and the total acquisition cost reached USD 54.5 billion. Is this (nomen omen) Saylor’s strategy to survive the recent BTC declines and emerging rumors about the imminent collapse of Strategy?
Michael Saylor is all orange again, but where does the money for further investments come from?
The purchases were financed by the sale of MSTR series shares (660,000 shares for USD 90.5 million) and STRC perpetual preferred shares (785,354 shares for USD 78.4 million). This is just a fragment of a broader machine, i.e. the so-called the “42/42” plan, which assumes raising a total of USD 84 billion in share issues and convertible bonds by 2027. In addition, there are ATM programs for STRK, STRC, STRF and STRD with a total value of over USD 31.5 billion.
Each instrument has its own risk profile: STRF is a conservative option with a 10% cumulative dividend, STRK allows you to participate in capital gains by converting to shares, STRD offers the highest potential and risk with a 10% non-cumulative dividend, and STRC is a variable rate with monthly payout.
“99 > 98” and other Saylor signals
Sam Saylor stated directly on CNBC’s Squawk Box:
Bitcoin will double or triple the S&P over the next four to eight years.
CEO Phong Le clarified:
Strategy has half the leverage of investment-grade companies. We are empowered, not overleveraged.
And the competition? He sails, but at a snail’s pace
194 public companies have some form of bitcoin vault today. MARA (53,250 BTC), Twenty One (43,514 BTC) and Metaplanet (35,102 BTC) are chasing the leader, but the distance is huge. MSTR has rebounded 16.5% in the past week, closing Friday at $133.88. However, the company’s valuation (mNAV ~0.91) is below the value of the BTC held – the market values it cheaper than the coins in the portfolio.
Strategy’s next purchases have two goals – the first is to further accumulate BTC, and the second is to clearly show that Saylor’s company has not lost its course and does not intend to run aground on the bullish sentiment.
