Strategy, the publicly traded company formerly known as MicroStrategy, scooped up approximately 2,543 Bitcoin in a single day. The purchase was funded through its preferred-stock financing program, STRC, and pushes the firm’s total holdings toward a staggering threshold: nearly 4% of all Bitcoin that will ever exist.

Bitcoin’s total supply is hard-capped at 21 million coins.

The buying machine keeps running

Strategy’s acquisition pattern has been relentless. Over recent months, the company has increased its disclosed holdings from 672,497 BTC to 818,869 BTC. This latest purchase of 2,543 BTC represents another brick in what has become the most aggressive corporate Bitcoin accumulation strategy in public markets.

The funding mechanism is worth understanding. Strategy sells shares and preferred stock to raise capital, then converts that capital into Bitcoin. In one recent example, the company sold 663,450 shares for $108.8 million.

The STRC preferred-stock program specifically has become a key tool in this playbook. By issuing preferred shares that carry dividend obligations, Strategy raises fresh capital, and those preferred dividends need to be paid, which is where the company’s $2.19 billion USD reserve comes into play, earmarked to support both preferred dividends and debt interest payments.

Average purchase prices across Strategy’s recent buys have varied considerably: approximately $88,568, $80,340, $67,700, and $78,815 per BTC at different points.

Why 4% matters more than it sounds

Strategy’s dominance in this category is unmatched among public companies. No other corporation comes close to holding this volume of Bitcoin on its balance sheet. The company has essentially redefined itself: once an enterprise software firm, now functioning primarily as a Bitcoin treasury vehicle that happens to still run a software business.

Michael Saylor has been the architect of this transformation since the company’s first Bitcoin purchase in August 2020.

What this means for investors

The financial engineering behind Strategy’s buying spree deserves scrutiny. The company is leveraging equity and preferred-stock markets to accumulate a volatile commodity. That works when Bitcoin prices rise, because the value of the treasury swells, the stock premium holds, and the company can issue more shares at favorable prices to buy more Bitcoin. A sustained Bitcoin downturn would compress Strategy’s net asset value, making future share sales more dilutive, all while those preferred dividends and debt payments still come due. The $2.19 billion USD reserve provides a cushion, but cushions have limits.