Strategy’s Corporate Treasury Reaches Total BTC Holdings of 660,624
Strategy (Nasdaq: MSTR) has announced the acquisition of 10,624 Bitcoin for approximately $962.7 million in cash between December 1 and December 7, 2024. This brings the company's total Bitcoin holdings to 660,624 BTC, maintaining its status as a leading…
Strategy (Nasdaq: MSTR) has announced the acquisition of 10,624 Bitcoin for approximately $962.7 million in cash between December 1 and December 7, 2024. This brings the company's total Bitcoin holdings to 660,624 BTC, maintaining its status as a leading corporate holder of the cryptocurrency.
The company acquired Bitcoin at an average price of $90,615 per unit during this period. Across all acquisitions, the average purchase price stands at approximately $74,696 per Bitcoin. The acquisition was funded through the sale of equity securities, with $963.0 million raised matching the capital used for the Bitcoin purchase.
Approximately 96% of the capital raised came from the sale of 5,127,684 shares of Class A Common Stock, generating $928.1 million in net proceeds. The remaining 4% was obtained from selling 442,536 shares of 10.00% Series A Perpetual Stride Preferred Stock, generating $34.9 million in net proceeds.
Strategy has revealed substantial remaining capacity for future equity issuances. As of December 7, the company has $13.45 billion available under its Class A Common Stock program. Additionally, it has $20.34 billion available under its 8.00% Series A Perpetual Strike Preferred Stock program, $4.10 billion for Stride Preferred Stock, $4.04 billion for Variable Rate Series A Perpetual Stretch Preferred Stock, and $1.64 billion for 10.00% Series A Perpetual Strife Preferred Stock. This totals over $43 billion in potential capital-raising capacity.
Strategy (Nasdaq: MSTR) has announced the acquisition of 10,624 Bitcoin for approximately $962.7 million in cash between December 1 and December 7, 2024.
Strategy's stock closed at $178.99, showing a decline of 25.07% month-to-date and 40.34% year-to-date. Despite this, the company trades at a premium of 1.13x mNAV, indicating investor willingness to pay more than the value of its Bitcoin holdings.
Strategy's approach represents a significant corporate treasury strategy in the digital asset space. The company has transformed into a Bitcoin treasury entity, leveraging capital markets to accumulate Bitcoin as a reserve asset.
With over $43 billion in capital-raising capacity, Strategy is positioned to continue its Bitcoin acquisition strategy. As Bitcoin's role in corporate treasury evolves, Strategy's approach will serve as a case study for other companies.
Based on reporting by TechBullion.
