Key Takeaways
- The strategy lifts BTC holdings to 650,000 after purchasing 130 bitcoin for $11.7M.
- The firm establishes a $1.44B USD reserve to fund preferred dividends and debt interest.
- MSTR stock faces pressure as dilution continues amid shifting capital strategy.
Strategy expanded its BTC reserve after purchasing 130 bitcoin for approximately $11.7 million. The company executed the acquisition at an average price of $89,960 per bitcoin, bringing its total holdings to 650,000 BTC. Strategy BTC reserve reflects the growing scale of the firm’s treasury strategy and its continued reliance on bitcoin accumulation. The purchase was funded through proceeds from recent at-the-market issuances of its Class A common stock.
Strategy’s Bitcoin Valuation Rises as Stock Faces Dilution Pressure
The company’s bitcoin trove is now valued at approximately $56 billion based on prevailing market prices. The average purchase price across all holdings stands at $74,436 per bitcoin, representing a total cost basis of roughly $48.4 billion. Strategy’s long-running accumulation approach has placed more than 3% of all bitcoin supply under its treasury structure.
The latest acquisition followed a week in which the firm did not announce any new bitcoin purchases, prompting concerns from traders who track its activity closely. During that period, MSTR stock fell to a local low near $166, reflecting pressure created by steady dilution and reduced market enthusiasm for additional equity issuance. The company noted an mNav metric of 0.9%, indicating limited speculative demand for new shares.
Strategy BTC Reserve Supports Dividend Payments and Debt Needs
Alongside the recent bitcoin purchase, Strategy introduced a significant change to its capital allocation framework. The company announced the formation of a $1.44 billion USD reserve intended to support dividend payments on its preferred stock and meet interest obligations on its existing debt. The reserve was funded entirely through ATM stock sales during the past two weeks.
According to the firm’s SEC filing, Strategy aims to keep enough liquidity to cover a minimum of twelve months of dividend payments. The company also plans to expand the USD reserve over time to eventually support twenty-four months or more of obligations. Management wrote that the reserve amount may be adjusted based on liquidity needs, market conditions, and other internal factors.
The new reserve marks a notable shift from Strategy’s long-stated goal of converting excess fiat into bitcoin. This change targets increased reliability for preferred shareholders seeking consistent yield. Establishing the reserve may also help the company raise additional capital through preferred issuances in the future.
Strategy BTC Reserve Strategy Evolves as Stock Dilution Continues
Strategy continued raising capital through ATM issuances, selling more than 8.2 million MSTR shares for approximately $1.48 billion in the past two weeks. The company still has more than $13 billion of common stock available for future issuance under the program. No preferred shares were sold during the reporting period, leaving more than $30 billion in capacity under those ATM structures.
MSTR shares traded near $174.75 after a month-long correction of more than 30%. Bitcoin declined during the same period, falling more than 17% in November. The company’s weekly purchases, once viewed as catalysts for bitcoin price surges, no longer appear to influence broader market movements, based on current trading behavior.
