Strategy Inc. (formerly MicroStrategy) continues its relentless bitcoin accumulation despite market volatility. According to an SEC 8-K filing on March 23, the company purchased 1,031 BTC between March 16 and March 22, using proceeds from its ATM equity offering. Total holdings now stand at 762,099 BTC, representing approximately 3.6% of bitcoin's 21 million supply cap.
Average Cost and Gap with BlackRock Shrinking
As of March 22, Strategy's total bitcoin cost basis is about $57.69 billion (including fees), with an average purchase price of $75,694 per BTC. The current market price of bitcoin hovers around $71,000, slightly below the company's average cost. Notably, Strategy's holdings are now just about 21,000 BTC behind BlackRock's IBIT bitcoin ETF. At the current pace of accumulation, Strategy could surpass BlackRock as the largest single institutional bitcoin holder as early as next week.
Shifting Financing Mix: From Common Stock to Preferred Shares
The funding for this week's purchase came from Strategy's at-the-market (ATM) equity program. However, the company has been shifting its financing structure toward preferred stock instruments, including STRC (Stretch Preferred Stock), offering an ~11.25% annual dividend with no maturity, and STRK (Strike Preferred Stock), which still has over $20 billion in remaining issuance capacity. Analysts note that issuing preferred shares reduces dilution for common stockholders while using the company's bitcoin treasury as collateral for interest payments.
Market Perception: Bitcoin Leverage Proxy
Despite bitcoin trading below Strategy's average purchase cost, the market remains supportive of its "bitcoin bank" model. CEO Phong Le previously stated that 2026 would be a pivotal year for bitcoin and the company, with a plan to maximize bitcoin value on the balance sheet through a mix of debt and equity. While this week's purchase of 1,031 BTC is smaller than last week's bulk acquisition of 22,000 BTC, the consistent buying strategy underscores the company's unwavering conviction.