- Michael Saylor announced Strategy’s new 390 Bitcoin acquisition for $43.4 million.
- The company now owns 640,808 BTC, with a purchase price of $47.44 billion.
Strategy (formerly MicroStrategy) Executive Chairman Michael Saylor did it again. After giving his usual cryptic post on Sunday, their company made a major announcement on Monday regarding their new multi-million Bitcoin (BTC) purchase.
Strategy’s Latest Bitcoin Acquisition
According to Saylor’s post and Strategy’s Form 8K filing at the US Securities and Exchange Commission (SEC), the company acquired 390 BTC between October 21 and 26 for a total of $43.4 million. This meant an average purchase price of $111,117 per BTC while the asset traded between a $106K low and a $116K high.
The latest development increases Strategy’s total digital asset haul to 640,808 BTC, capturing 3.21% of Bitcoin’s 19.94 million circulating supply and 3.05% of its 21 million supply cap. This, in turn, raises the business’s BTC yield to 26% year to date (YTD), which is a metric used to measure the percentage growth of its Bitcoin holdings relative to its outstanding shares.
So far, Strategy has already invested $47.44 billion in its Bitcoin treasury. The figures translate to a dollar cost average (DCA) of $74,032 per BTC, only slightly adding to its $74,010 DCA last week.
Widening Gap in Strategy’s STRF and STRD Offerings
Strategy funded last week’s batch of Bitcoin transactions using the proceeds of its series A perpetual strife (STRF), strike (STRK), and stride (STRD) offerings. These comprised 175,634 STRF shares, 191,404 STRK shares, and 87,462 STRD shares.
The company still has around $46.26 billion worth of shares available for issuance, which it can utilize for future BTC accumulations and/or other corporate pursuits. Amid the consistent demand for its preferred shares, Saylor noted a growing disparity between Strategy’s STRF and STRD offerings.
Strategy notably tailored the STRF, STRK, STRD, and STRC (perpetual stretch) preferred stocks for investors with varying risk-return profiles. The products give them Bitcoin exposure without the volatility of the MSTR common stock.
Saylor admitted in a podcast over a week ago that investors tend to overlook STRD because it trades like a junior security. On the other hand, STRF is a senior instrument.
The senior executive explained that STRD’s status makes it less appealing despite its 12.7% yield compared to STRF’s 9.1% yield. Furthermore, he emphasized that investors could get yields 350 basis points higher with the STRD offering.
