Michael Saylor is at it again. The executive chairman of business software firm Strategy (formerly MicroStrategy) posted a terse message — “think bigger” — that the market reads as a prelude to another blockbuster Bitcoin acquisition. As of April 6, the company’s holdings stood at 766,970 BTC, and at the current pace, crossing 800,000 BTC by the end of April looks almost certain.
Monthly Buyout Dwarfs Global Mining Output
Strategy has completed 105 separate purchases since August 2020. The latest, on April 6, added 4,871 BTC at a total cost of roughly $329.8 million. In March alone, the firm snapped up 46,233 BTC — nearly three times the 16,200 BTC mined worldwide during the same period. SEC filings from Q1 reveal the company’s average purchase price climbed to $75,644. At the time of these buys, Bitcoin traded roughly $5,000 below that level, leaving an unrealized loss of about $14.5 billion on the books.
STRC Model: A 2% Break-Even Yield
The buying spree is fueled by a novel funding structure. Strategy’s preferred stock product, STRC, carries an annual break-even yield of around 2.05%, according to Saylor. As long as returns on the Bitcoin stash stay above that threshold, the company can cover its dividend obligations without issuing more common shares. In recent weeks, hundreds of millions of dollars in fresh capital flowed into STRC ahead of the dividend record date, providing fresh firepower for the next wave of purchases.
The sustainability of this model hinges on Bitcoin’s price trajectory — prolonged sideways or downward moves would put pressure on the 2% cushion. Currently, Bitcoin trades near $71,800, up 7.9% on the week. After news of a ceasefire in Iran, the price held above $70,000 for four consecutive days.
Whether Saylor’s “think bigger” translates into another record-shattering buy depends on the size of the upcoming purchase. If Strategy maintains its March pace of over 40,000 BTC per month, total holdings will surpass 800,000 BTC by late April. Analysts link the accelerated accumulation to the flexibility of the STRC funding model, which allows the company to keep buying relentlessly without the immediate dilution pressure that equity issuance would bring.