In a notable move for the cryptocurrency market, Strategy (Nasdaq: MSTR) has acquired 10,624 bitcoin for approximately $962.7 million in cash between December 1 and December 7, according to a recent regulatory filing. This significant purchase has brought the company’s total bitcoin holdings to an impressive 660,624, with an average purchase price of around $74,696 per bitcoin across all holdings.
To finance this acquisition, Strategy paid an average price of $90,615 per bitcoin, primarily funded through the sale of Class A common stock and Series A Perpetual Stride Preferred Stock under its at-the-market equity offering programs. During the reported period, the company successfully raised total net proceeds of $963.0 million via these equity sales.
Interestingly, approximately 96% of the total capital raised in this timeframe came from the sale of common stock. In total, 5,127,684 shares of Class A Common Stock were sold, generating $928.1 million in net proceeds. The remaining 4% was sourced from preferred equity, with the sale of 442,536 shares of the 10.00% Series A Perpetual Stride Preferred Stock (Nasdaq: STRD), yielding $34.9 million in net proceeds. The weighted average purchase price for the bitcoin acquired through these funding mechanisms was recorded at $90,615.
The company’s filing highlighted its robust remaining capacity under equity offering agreements, allowing for future acquisitions or various corporate purposes. As of December 7, Strategy had approximately $13.45 billion available for issuance and sale under its Class A Common Stock program.
In addition to its Class A offerings, the regulatory document detailed the remaining availability for its different lines of preferred stock. Strategy has $20.34 billion available under its 8.00% Series A Perpetual Strike Preferred Stock (Nasdaq: STRK) program, with $4.10 billion left for the Stride Preferred Stock (Nasdaq: STRD), $4.04 billion for the Variable Rate Series A Perpetual Stretch Preferred Stock (Nasdaq: STRC), and $1.64 billion for the 10.00% Series A Perpetual Strife Preferred Stock (Nasdaq: STRF).
Despite this substantial investment in bitcoin, shares of Strategy closed at $178.99, reflecting a 25.07% decline month-to-date and a significant 40.34% decrease year-to-date. At the time of the disclosure, the company’s stock was trading at a premium to its net asset value, with a multiple of 1.13x mNAV, indicating a complex interplay between its equity performance and the broader cryptocurrency landscape.
