Strategy adds 397 BTC worth $45.6 million in latest weekly purchase

Strategy added 397 BTC, extending the series of relatively small weekly acquisitions. The purchase was anticipated following Michael Saylor’s traditional weekly teaser. 

Strategy acquired 397 BTC in its traditional weekly purchase, valued at $45.6M. On average, the coins were acquired at $114,771, bought at market rates during the previous week’s brief recovery. 

Despite the new Strategy purchase, BTC traded at $107,852, setting up bearish expectations. Strategy still has a much lower average acquisition price, even following the purchases near the top. 

The recent purchase with a high average price shows Strategy is not even making a small attempt at timing the market or buying the dip. Previously, Strategy’s purchases boosted BTC and prevented a further slide, but the current price levels are more volatile and harder to time.

Strategy returns to MSTR issuance

Strategy returned to issuing MSTR to buy more BTC, after three weeks of using various combinations of preferred shares. 

This time, the bulk of the new raise came from new MSTR issuance. The company raised $54.4M from MSTR emissions, while only using a part to acquire BTC, with the rest going to general expenses. Strategy still has to ensure the mandatory dividend for STRC preferred shares, and additional payouts for STRD when applicable. 

Strategy used STRK to raise another $4.9M, and added $2.3M through the STRD facility. The disparity between the funds raised and the net proceeds suggests that Strategy may be using some of the new funds to pay down older obligations. 

MSTR still trades under $300

MSTR common stock traded at $269.30, close to a six-month low. The recent small purchases are showing a loss of ability to make a big dent on the BTC market. Strategy no longer offsets the newly mined coins or the much more active selling from funds, whales, or miners. 

Strategy still has a mNAV value of 1.3, trading above the value of its assets. This time, the multiplier is much smaller, signaling lowered confidence for BTC acquisitions. 

Previously, the expectation for MSTR was to issue the common stock at a slower pace, taking up to a decade. However, Strategy used the MSTR common stock ATM much more often, causing rapid dilution. 

The fast dilution of MSTR does not coincide with previous promises of 10-year time windows for holding or tracking the four-year BTC cycle. Instead, Strategy used up much of its MSTR facility during some of the most rapid climbs, buying at a high average BTC price with no changes due to market conditions.

Strategy also signaled that it is unlikely to acquire rivals for their treasuries. Currently, treasury companies are more cautious with their buying, with most delaying new BTC additions. Smaller companies are not as eager to add BTC to their balance just for exposure.

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