Strategy, the company formerly known as MicroStrategy, bought 520 Bitcoin for approximately $35 million last week. That brings the firm’s total holdings to 847,363 BTC, a number so large it represents roughly 4% of all Bitcoin that will ever exist.

The numbers behind the buy

According to Strategy’s June 22 Form 8-K filing, the 520 BTC were acquired at an average price of roughly $67,068 per coin. That’s a notable discount compared to the company’s all-in average acquisition cost of approximately $75,651 per BTC across its entire portfolio.

The purchase follows a larger acquisition just one week earlier, when the company scooped up 1,587 BTC for around $100 million in the filing dated June 15. The back-to-back buys are par for the course. Strategy has turned weekly Bitcoin purchases into something resembling a subscription service, filing 8-K disclosures with the regularity of a metronome.

How Strategy funds its Bitcoin habit

Here’s the thing about Strategy’s approach: it doesn’t fund these purchases from software revenue. The company primarily raises capital through at-the-market equity offerings, issuing both common stock and preferred shares to generate the cash it needs to buy Bitcoin.

This mechanism has been the backbone of Strategy’s treasury strategy since Executive Chairman Michael Saylor kicked off the Bitcoin accumulation playbook in 2020. The logic is straightforward. Sell equity, buy Bitcoin, hope Bitcoin appreciates faster than dilution erodes shareholder value.

For traders watching the tape, the key metric to track isn’t just the size of each weekly purchase. It’s the gap between Strategy’s average acquisition cost of $75,651 and Bitcoin’s current market price. As long as BTC trades above that level, the company’s thesis is in the green. If it dips below, the pressure on Saylor’s strategy, and Strategy’s stock, would intensify considerably.