Strategy to buy an additional 10,100 BTC, raising total holdings above 592,000 BTC

According to an 8-K filing with the U.S. Securities and Exchange Commission (SEC) Monday, investment firm Strategy (trước MicroStrategy) bought an additional 10,100 BTC for a total value of about $1.05 billion, or an average price of $104,080 per BTC, between June 9 and 15.

With the latest transaction, Strategy currently holds a total of 592,100 BTC, worth over 63 billion USD at current market prices. The average purchase price is 70,666 USD/BTC, equivalent to a total cost of about 41.8 billion USD after accounting for fees and related expenses, according to shares from co-founder and Executive Chairman Michael Saylor. This holding represents approximately 2.8% of the total maximum supply of 21 million BTC, with an estimated unrealized gain on paper of around 21 billion USD.

Raising capital from preferred shares

The purchase of BTC this time was partially funded by the sale of perpetual preferred shares STRK and STRF through a market price issuance (ATM). Last week, Strategy sold:

• 452.487 STRK shares, raising approximately 45.2 million USD; the program still has space to issue 20.57 billion USD.
• 286.101 STRF shares, raising 28.6 million USD; the remaining program is 1.98 billion USD.

No common stock type A (MSTR) was sold in the past week, but this ATM program still has a limit of 18.63 billion USD.

The new purchase is mainly supported by a $1 billion IPO for a new perpetual preferred stock named STRD, with a fixed interest rate of 10% per year, non-cumulative and non-convertible. Meanwhile, STRK is a convertible preferred stock with a fixed interest rate of 8% per year, while STRF is non-convertible but has an interest rate of 10% per year and is cumulative.

The "42/42" strategy to boost Bitcoin accumulation

The STRK and STRF stock programs – valued at 21 billion USD and 2.1 billion USD respectively – are part of the "42/42" fundraising strategy of Strategy, aimed at a total fundraising target of 84 billion USD through the issuance of stocks and convertible bonds to purchase Bitcoin by 2027. This is an upgraded version of the previous "21/21" plan.

Last week, Strategy also purchased an additional 1,045 BTC worth approximately 110.2 million USD ( at an average of 105,426 USD/BTC), increasing the total holdings to 582,000 BTC before carrying out the latest purchase of 10,100 BTC – marking a return to the increasing speed of BTC accumulation after a few weeks of stagnation due to a shift in focus from common stocks to preferred stock programs.

Concerns about the concentration of BTC in the hands of businesses

Currently, 228 companies have adopted the Bitcoin accumulation model like Strategy. Recently, several new names such as Tether-backed Twenty One, Nakamoto, Trump Media, GameStop, Semler Scientific, and KULR have also joined this model. The Japanese group Metaplanet announced on Monday that it has purchased an additional 1,112 BTC, bringing its total holdings to 10,000 BTC.

However, the continuous accumulation of BTC by companies is raising concerns about concentration and systemic risk. According to experts from the digital asset bank Sygnum, the dominance of businesses like Strategy could make Bitcoin "no longer suitable" to be held by central banks. David Duong, Head of Research at Coinbase Institutional, also warns that this trend may pose "systemic risks" in the long term.

Michael Saylor remains optimistic. In a recent interview with Financial Times, he asserted that the capital structure of the Strategy is designed to withstand a 90% drop in Bitcoin lasting 4–5 years, thanks to a combination of stocks, convertible bonds, and preferred shares. However, he also acknowledged that shareholders would still "suffer losses" in such a scenario. Analysts at Bernstein agree that the Strategy still has relatively low leverage and no debts maturing before 2028, helping to maintain financial stability.

MSTR stock rose 0.8% over the weekend, reaching 382.87 USD, according to The Block. In pre-market trading on Monday, MSTR added another 1.6%, bringing the total gain for the year to date to 27.6% – despite geopolitical volatility in the Middle East affecting the market.

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