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8h ago

Strategy Buys $449 Million in Bitcoin as S&P 500 Decision Nears

Fair-value accounting lifted GAAP profits, clearing index eligibility ahead of the September rebalance.

Strategy’s equity shift is no retreat from bitcoin strategy, benchmark says
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Photo: Chris Kleponis/CNP/Bloomberg
Michael Saylor's Strategy acquires Bitcoin

Overview

  • An SEC filing shows Strategy purchased 4,048 BTC between Aug. 25 and Sept. 1 for about $449.3 million at an average price of $110,981, lifting its holdings to 636,505 BTC.
  • The buy was funded primarily through at-the-market stock sales, including 1,237,000 MSTR shares for $425.3 million plus preferred issuances (STRK, STRF, STRD) raising roughly $46.5 million, with substantial capacity remaining.
  • The company’s Q2 produced about $14 billion in operating income and $10 billion in net income, with January’s fair-value accounting change enabling recognition of unrealized Bitcoin gains.
  • Strategy now meets S&P 500 inclusion criteria, with the index committee’s announcement expected Friday and any changes scheduled to take effect Sept. 19.
  • A class-action lawsuit over accounting disclosures was dropped, while analysts highlighted debate over equity issuance and dilution as the firm continues capital-markets-funded BTC accumulation.