Strategy Purchased Another 520 BTC Last Week for Approximately $34.9 Million
N.R. Finch
Strategy added 520 BTC last week at an average price of $67,068, funded by $335.5 million raised through MSTR stock sales; yet the company's total holdings now carry an unrealized loss of roughly $9.3 billion, and its preferred stock STRC has hit a record low — putting the entire "sell shares, buy bitcoin" model under pressure.
Where did the money for these 520 bitcoin come from?
Strategy bought 520 BTC between June 15 and 21, spending roughly $34.9 million at an average of about $67,068 per coin.
The cash came from selling 2.7148 million MSTR shares through an at-the-market (ATM) offering — a mechanism that lets companies sell stock directly into the open market — raising about $335.5 million.
In plain terms = Strategy's business model is a loop: issue stock → collect cash → buy bitcoin. The coins are not paid for with operating profit.
How big is the position, and how deep is the loss?
Strategy now holds a cumulative 847,363 BTC, acquired at a total cost of roughly $64.1 billion — an average price of $75,651 per coin.
At current market prices the stash is worth about $54.8 billion, leaving an unrealized loss of roughly $9.3 billion.
This means → bitcoin needs to rally about 17% from here just to reach Strategy's break-even. The holding represents over 4% of bitcoin's 21-million-coin hard supply cap.
What is happening with the preferred stock STRC?
STRC is a variable-rate cumulative preferred stock issued by Strategy, designed to trade near its $100 par value and currently paying an annualized 11.5% yield.
Since mid-May, STRC has traded persistently below par. Last week it touched $82.53 — a record low. Strive CEO Matt Cole called last Thursday "the most difficult day in digital credit history."
This reflects eroding confidence in Strategy's high-yield-preferred-to-bitcoin pipeline. Investors worry the interest burden is too heavy while bitcoin stays flat or falls.
Does the "death spiral" narrative hold up?
Benchmark analyst Mark Palmer argues the death-spiral story skips a critical step: before Strategy would ever need to sell BTC, it must first exhaust roughly $1 billion in cash reserves earmarked for dividend payments.
The company's USD reserve balance rose from $1.1 billion on June 14 to $1.4 billion on June 21, including expected proceeds from ATM shares sold but not yet settled.
In plain terms = there is still a cash cushion; Strategy is not being forced to dump bitcoin to cover dividends in the near term. How long that cushion lasts depends on where bitcoin trades.
How are the stock and the remaining funding headroom looking?
Strategy's share price fell 5.8% last week to close at $112.53, bringing the year-to-date decline to 27.2%. Bitcoin dropped about 4% over the same period.
Per Bitcoin Treasuries data, MSTR's market-cap-to-net-asset ratio (mNAV) sits at roughly 0.81; Strategy's own measure, which includes debt and preferred stock, is 1.12. This means → the market values the company at less than the net value of the bitcoin it holds.
The ATM program still has about $25.4 billion in MSTR issuance capacity, plus $21 billion in STRC and $2.1 billion in STRK headroom — but with STRC under pressure, whether the preferred-stock channel can keep converting into BTC purchases is an open question.
What does TD Cowen say about the outlook?
Analysts Lance Vitanza and Jonnathan Navarrete see the STRC dividend burden as manageable under current reserves.
But they stress that bitcoin needs to sustain moderate appreciation for Strategy's overall plan to deliver as promised.
This reflects a core tension: Strategy's model is an accelerator in a bull market and a burden in a sideways or bear market — the company's fate is locked to the bitcoin price, with no offramp.
Content is for reference only, not financial advice.