Strategy was the only major public company to buy Bitcoin last week, adding $100 million worth of BTC to its reserves, while other listed firms stayed on the sidelines.
The company bought 1,587 BTC between June 8 and June 14 at an average price of $63,024 per coin, according to its latest 8-K filing with the US Securities and Exchange Commission. The purchase lifted Strategy’s total holdings to 846,842 BTC, worth about $56 billion at recent market prices.
Strategy funded the purchase through its at-the-market stock sale program. During the same period, the company sold 1,732,553 shares of its Class A common stock, MSTR, raising $209 million in net proceeds. Only $100 million of that amount went into Bitcoin, while the remaining proceeds were added to its cash reserves.
Strategy stands alone in corporate Bitcoin buying
The most notable part of last week’s activity was not the size of Strategy’s purchase, but the lack of activity elsewhere. SoSoValue data shows that tracked public companies made about $100 million in net Bitcoin purchases during the week, with Strategy accounting for the full amount.
That raises fresh questions about whether corporate Bitcoin demand outside Strategy is slowing. Metaplanet, which has been one of the most active public companies accumulating Bitcoin after Strategy, has not made a new purchase in two consecutive months.
Public companies tracked by SoSoValue hold about 1.12 million BTC, representing roughly 5.6% of Bitcoin’s circulating supply and valued at around $74.4 billion. Strategy alone controls about 75% of that total, making it by far the dominant listed corporate holder of the asset.
A smaller buy below its average cost
Strategy’s latest purchase was made below its blended average cost basis. The company’s total Bitcoin holdings were acquired for about $64.07 billion, at an average price of $75,656 per coin.
That means the latest batch of Bitcoin was bought at a price substantially below the company’s overall average. It is the second consecutive week that Strategy has added coins below its cost basis, giving the company a chance to lower its average entry price while Bitcoin trades below earlier acquisition levels.
At recent Bitcoin prices, Strategy’s holdings are worth about $56 billion, compared with an aggregate purchase cost of more than $64 billion. That implies an unrealized loss of roughly $8 billion, depending on the market price used.
CEO Michael Saylor hinted at the acquisition before the filing by posting a chart of Strategy’s Bitcoin purchases with the phrase, “Still adding dots.” The phrase has become a regular signal ahead of the company’s Monday disclosure filings.
Preferred stock pressure tests the treasury model
Strategy still has significant capacity to raise funds. Its latest SEC filing shows that it has $25.7 billion of MSTR shares available for sale under its existing at-the-market program.
The company also has remaining preferred stock capacity, including $17.5 billion in STRC, $4 billion in STRD, $2.1 billion in STRK, and $1.6 billion in STRF.
STRC, a variable-rate preferred stock that pays monthly dividends at an annualized rate of 11.5%, had been a major funding vehicle for Bitcoin purchases earlier this year. However, the security has traded below its $100 par value since mid-May and has not been used for Bitcoin acquisitions in the past month.
Shareholders voted last week to shift STRC dividend payments from monthly to twice-monthly, a move aimed at supporting the preferred stock’s price and improving market confidence in the instrument.
Cash reserves become the new focus
Strategy’s dollar reserves are also under closer scrutiny. The company said it held a USD reserve of $1.1 billion as of June 14, up from $1 billion the previous week.
That increase comes after JPMorgan analysts said Strategy’s recent sale of 32 BTC had unsettled the market and that the company would need to build larger dollar reserves to reassure investors. The current reserve level is enough to cover about six months of dividend and interest payments, according to The Block.
Sygnum Bank analysts noted that Strategy could meet its preferred stock dividend obligations by selling a small portion of its Bitcoin holdings. However, they warned that doing so would weaken the investment case that attracted many shareholders in the first place.
The concern is simple: Strategy’s premium depends on the market believing it is a Bitcoin accumulation vehicle, not a treasury that sells Bitcoin to fund yield obligations. If the company is forced to sell coins to support its capital structure, that could undermine the core thesis behind the stock.
MSTR recently traded around $131 after the disclosure, though the stock remains down year-to-date. Bitcoin, meanwhile, was little changed over the same weekly period.
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