According to a report submitted to the U.S. Securities and Exchange Commission, Bitcoin 
$75,023-focused corporate investment company Strategy recently acquired 1,955 Bitcoin between September 2nd and 7th. This purchase, made at an average cost of $111,196 per Bitcoin, amounted to an expenditure of approximately $217.4 million. With this acquisition, Strategy’s total Bitcoin holdings have increased significantly, reaching 638,460 BTC, valued at nearly $71 billion.
New Financial Structure for Bitcoin Acquisitions
Strategy’s Bitcoin purchases are financed through at-the-market (ATM) equity sales and a unique array of perpetual preferred shares. The shares, identified by the codes STRK, STRC, STRF, and STRD, offer investors a variety of dividend structures. STRK is convertible and foresees an 8% dividend, while STRF presents a safer profile with a 10% cumulative dividend. STRD is non-convertible with a contingent 10% dividend, representing a high risk-return balance. Additionally, STRC provides flexibility to investors with its variable interest and monthly dividend.
The total size of these preferred share programs amounts to $31.5 billion. Complementing this, a capital increase plan known as “42/42” aims to generate up to $84 billion by 2027. This initiative builds on the initial $21 billion “21/21” program, representing a strategic expansion. Hence, the company has linked its Bitcoin acquisitions to a long-term capital strategy.
Strategy Not Included in S&P 500: An Unexpected Twist
September witnessed the exclusion of Strategy from the S&P 500 index update. Robinhood, AppLovin, and EMCOR Group were selected as new additions. As a result, Strategy missed the opportunity to attract billions of dollars in new investor interest through passive funds, despite its prominent market capitalization and trading volume. Bloomberg data indicate that passive funds linked to the S&P 500 index have reached a massive $22 trillion.
Following these developments, Nasdaq announced plans to tighten oversight of cryptocurrency-focused companies. The new regulations will require shareholder approval for certain fundraising activities and increase disclosure obligations. Strategy reported that these changes do not affect its ongoing ATM programs and capital market activities. MSTR, the company’s stock, concluded last week up by 2.5%, closing at $335.87. Even though MSTR’s year-to-date return has fallen by 11.9%, it still lags behind the 18.7% gain achieved by Bitcoin in the same period.
