Strategy adds 8,178 BTC with $836M preferred stock funding

Strategy lifted its holdings to 649,870 BTC by buying an additional 8,178 BTC for about $835.6 million between Nov. 10 and Nov. 16 via at-the-market issuances of its perpetual preferred stock. The filing detailed that proceeds came from several preferred stock programs, with additional funding from a €620 million issuance of STRE, its first euro-denominated instrument. The company characterized the buying as its largest weekly additions since July.

Co-founder and executive chairman Michael Saylor reported that Strategy’s 649,870 BTC have an average cost of $74,433 per coin, reflecting a total cost basis of about $48.4 billion, including fees and expenses. The company’s holdings now equal more than 3% of Bitcoin’s 21 million maximum supply.

The preferred stock programs include both convertible and non-convertible series with differing dividend features and rate structures. Strategy has outlined a “42/42” capital plan that targets $84 billion in equity offerings and convertible notes for Bitcoin purchases through 2027, expanded after initial allocations were used.

As we previously reported, on Nov. 10 Strategy disclosed a $49.9 million purchase at an average price of $102,557, which brought its holdings to 641,692 BTC at that time. On Sunday (Nov. 16), Saylor previewed further activity on social media with the message “₿ig week.”

Recent weakness in Strategy’s share price and trading below net asset value prompted questions about potential forced sales of BTC. Analysts estimate the company’s leverage at roughly $8 billion of debt against about $61 billion of Bitcoin holdings and note that dividends on preferred instruments are covered by treasury resources and ongoing access to capital via at-the-market programs.

On Nov.14, Saylor addressed online speculation that the company had sold 47,000 BTC, writing, “There is no truth to this rumor.” He added in a television interview the same day, “We are buying. We’re buying quite a lot, actually, and we’ll report our next buys on Monday morning.”

Strategy’s stock fell 10.3% last week and is down 33.4% year to date. The shares closed at $199.75 on Nov. 14, off 4.2%, and were modestly higher in early Nov.17 trading. The market-cap-to-net-asset-value ratio recently hovered near 0.93, a level seen previously during tighter credit conditions.

Saylor has maintained that the firm’s mix of equity, convertible debt and preferred instruments is designed to endure a prolonged Bitcoin downturn, including a decline of up to 90% lasting four to five years, while reiterating the company’s buy-and-hold approach.