Key Takeaways
- A Monday regulatory filing revealed the company bought Bitcoin between February 23 and March 1 at an average price of $67,700 per coin.
- Strategy now controls more than 717,000 BTC
Michael Saylor’s Strategy Inc. added 3,015 Bitcoin to its holdings last week through a $204.1 million purchase that relied overwhelmingly on common stock sales, contradicting earlier management statements about prioritising perpetual preferred shares for acquisitions. This reportedly marked the firm’s 101st Bitcoin purchase, underlining its sustained accumulation strategy.
A Monday Securities and Exchange Commission (SEC) regulatory filing revealed the company bought Bitcoin between February 23 and March 1 at an average price of $67,700 per coin. About $230 million came from issuing Class A common stock, with just $7 million—roughly 3% of the total—raised through selling “Stretch” preferred shares at below face value.
This marks a sharp contrast to management’s previous messaging. Strategy had signaled it would lean heavily on Stretch preferred shares for future Bitcoin purchases to avoid diluting common shareholders. Instead, the company doubled down on common stock issuance, which expands the total share count and reduces existing investors’ proportional ownership.
The purchase dwarfs the prior week’s $40 million Bitcoin buy, which also came entirely from common stock despite the company’s stated preference for preferred equity. Strategy now controls more than 717,000 BTC following what it calls its 100th Bitcoin acquisition since beginning its accumulation strategy.
Bitcoin’s price slide has also worked in Strategy’s favour recently. The $67,700 average from last week sits below the company’s overall cost basis, as per SaylorTracker, which monitors the firm’s transactions. This represents one of the few times Strategy has purchased below its average acquisition price.
Just weeks earlier on February 9, Strategy had bought 1,142 BTC when market prices had dropped below $76,051. Yet the company reported paying an average of $78,815 per coin for that batch—above where Bitcoin was actually trading at the time.
Meanwhile, Strategy’s financial position shows $2.25 billion in cash reserves alongside $904 million in annual dividend commitments. The company carries $8.25 billion in debt and $8.46 billion in preferred equity. Management reports 12% net leverage with 53.2 Bitcoin years of dividend coverage and 29.9 months of USD dividend coverage.
The firm had recently rebranded from MicroStrategy to Strategy as it transformed from an enterprise software company into what functions as a Bitcoin treasury vehicle. Chairman Michael Saylor has framed this as arbitraging the gap between Bitcoin’s long-term appreciation potential and the cost of raising capital through debt and equity.
