Strategy Inc Expands Bitcoin Holdings Despite Market Dip

Strategy Inc lifts its Bitcoin holdings to 640,031 BTC worth $47.35B while diversifying funding through preferred stock programs.

Despite a 32% stock decline, Strategy maintains an $87.6B market cap trading at a premium to its Bitcoin net asset value.

Michael Saylor insists Strategy’s structure can endure a 90% Bitcoin crash for years, though he admits shareholders would still suffer.

Strategy Inc continues to strengthen its Bitcoin treasury despite market headwinds and slowing buying momentum. The company, led by Michael Saylor, disclosed its latest purchase of 196 BTC worth $22.1 million at an average price of $113,048 per coin

This raises its total stash to 640,031 BTC, acquired for roughly $47.35 billion at an average of $73,983. The acquisition was confirmed in a recent SEC Form 8-K filing, signaling another strategic addition.

The company’s headquarters sit in Tysons Corner, Virginia, operating under the name Strategy Inc. Its securities trade on Nasdaq under multiple tickers, including MSTR for its common stock and several perpetual preferred stock series such as STRC, STRK, STRD, and STRF. Besides, the firm’s filing indicated no special election as an emerging growth company, underscoring its established corporate framework.

Strategy’s purchases have slowed in recent weeks. Last week, the company bought 850 BTC for $99.7 million. However, the pace reflects a shift from funding via common stock ATM programs to issuing perpetual preferred stock. This diversification ensures fresh capital while maintaining manageable leverage

Moreover, Bitcoin Treasuries data shows 180 companies now hold BTC, with Strategy by far the leader. The next biggest holders include Marathon Digital, Tether-backed Twenty One, and Bitcoin Standard Treasury Company.

Market Premium and Investor Concerns

Despite a 32% drop in its stock price from summer highs, Strategy maintains an $87.6 billion market cap. Its valuation trades at a premium to its Bitcoin net asset value, with a current mNAV ratio of 1.23

Consequently, some investors voice concerns about overvaluation and relentless Bitcoin acquisition programs. However, Bernstein analysts counter that Strategy’s low debt levels and no repayments due until 2028 keep its leverage manageable.

Saylor remains confident. Earlier this year, he said Strategy’s structure could “withstand a 90% drop in Bitcoin that persists for four to five years,” citing its mix of equity, convertible debt, and preferred stock. Nevertheless, he admitted shareholders would still “suffer” in such a severe downturn.

Strategy’s conviction remains unshaken. Despite short-term valuation risks, its capital structure and aggressive Bitcoin buying confirm its long-term bullish stance.

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