‘Big orange’: Michael Saylor’s Strategy buys another 13,627 bitcoin for $1.25 billion following MSCI indexing decision

Bitcoin treasury company Strategy acquired an additional 13,627 BTC for approximately $1.25 billion at an average price of $91,519 per bitcoin between Jan. 5 and Jan. 11, according to an 8-K filing with the Securities and Exchange Commission on Monday.

Strategy now holds a total of 687,410 BTC — worth around $62.3 billion — bought at an average price of $75,353 per bitcoin for a total cost of around $51.8 billion, including fees and expenses, according to the company’s co-founder and executive chairman, Michael Saylor. To put that in perspective, the haul represents more than 3% of Bitcoin’s total 21 million supply and implies around $10.5 billion of paper gains at current prices.

The latest acquisitions were made using proceeds from at-the-market sales of its Class A common stock, MSTR, and perpetual Stretch preferred stock, STRC. Last week, Strategy sold 6,827,695 MSTR shares for approximately $1.13 billion. As of Jan. 11, $10.26 billion worth of MSTR shares remain available for issuance and sale under that program, the firm said. Strategy also sold 1,192,262 STRC shares for around $119.1 million, with $3.92 billion shares remaining.

Strategy’s STRK, STRC, STRF, and STRD perpetual preferred stock’s respective $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion ATM programs are in addition to the firm’s “42/42” plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027 — upsized from its initial $42 billion, “21/21” plan after the equity side was depleted.

STRD is non‑convertible with a 10% non‑cumulative dividend and the highest risk‑reward profile. STRK is convertible with an 8% non‑cumulative dividend, allowing equity upside. STRF is non‑convertible with a 10% cumulative dividend, making it the most conservative. STRC is a variable‑rate, cumulative preferred stock offering monthly dividends, with adjustable rates designed to keep it near par.

DAT struggles

According to Bitcoin Treasuries data, 194 public companies have adopted some form of bitcoin acquisition model. MARA, Tether-backed Twenty One, Metaplanet, Adam Back, and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company, Bullish, Riot Platforms, Coinbase, Hut 8, and CleanSpark make up the remainder of the top 10, with 53,250 BTC, 43,514 BTC, 35,102 BTC, 30,021 BTC, 24,300 BTC, 18,005 BTC, 14,548 BTC, 13,696 BTC, and 13,099 BTC, respectively.

However, the value of many of the cohort’s shares is down significantly from their summer peaks as their market cap-to-net asset value ratios sharply contract, with Strategy itself down 67%, for example. Strategy’s mNAV currently sits at around 0.81 — meaning the company is worth less than the value of the Bitcoin it holds.

‘Big orange’

Saylor again hinted at its latest set of acquisitions ahead of time, sharing an update on Strategy’s bitcoin acquisition tracker on Sunday, stating, “₿ig Orange.”

Strategy’s bitcoin acquisitions. Image: Strategy.

Last Monday, Strategy announced it had purchased another 1,286 BTC for approximately $116.3 million at an average price of $90,391 per bitcoin — taking its total holdings to 673,783 BTC.

Strategy also boosted its USD reserve by $62 million last week to $2.25 billion. The firm’s USD Reserve is designed to support the payment of dividends on its preferred stocks and interest on its existing debt, with the latest addition following the $748 million in cash it added to the reserve just before Christmas.

In December, Strategy also urged major stock indices provider and analysis firm MSCI to drop a proposal that would bar companies whose digital-asset holdings exceed 50% of total assets from its global equity benchmarks, warning the move would create unstable index churn and contradict the U.S. government’s push to foster digital-asset innovation.

MSCI made that decision on Jan. 6, confirming it will not immediately remove digital asset treasuries (DATs) from its index products in its February rebalancing, after months of uncertainty for crypto-related equities.

MSCI’s primary concern was that DATs function more like passive investment fund vehicles, which are not eligible for inclusion in their indexes. Of the 39 firms classified as DATs, about 18 were already current constituents in MSCI indexes and faced removal, while the rest would have been ineligible for future inclusion if the proposal had passed. MSCI has another quarterly index review in May ahead of a June rebalancing.

Strategy’s stock clocked a positive week following the MSCI decision, up 1.8% to $157.33, according to The Block’s Strategy price page. However, a 5.8% slump on Friday nearly canceled out early-week gains. MSTR is currently up 0.4% in pre-market trading on Monday.