Strategy co-founder Michael Saylor hinted at another significant Bitcoin purchase this Sunday, posting “think bigger” on social media alongside the company’s signature acquisition tracker. This specific messaging has preceded every major corporate accumulation move since the firm began its aggressive buying campaign in 2020.
The firm currently maintains a massive cache of 766,970 Bitcoin. According to the company’s first-quarter SEC filings, this stash was acquired at a blended average price of $75,644 per coin. With current market prices hovering near $71,800, the company is sitting on approximately $14.5 billion in unrealized losses.
A High-Stakes Funding Model
Despite the paper losses, the company’s buying pace continues to accelerate. During the month of March, Strategy acquired 46,233 Bitcoin. This volume dwarfs global mining output, which totaled roughly 16,200 Bitcoin in the same period. Effectively, the company absorbed nearly three times the total supply generated by the global mining network.
Strategy funds these acquisitions through its STRC preferred equity product. Saylor recently disclosed that the company requires only a 2.05% annual return on its Bitcoin holdings to cover the dividends associated with this product. If the asset appreciates beyond that threshold, the company can sustain its accumulation model without diluting shareholders through new stock issuance.
However, the model relies heavily on consistent market performance. While a 2% hurdle is relatively low by historical standards for Bitcoin, the strategy remains vulnerable if the market enters a prolonged period of stagnation or decline.
Investor appetite for the STRC product remains robust, with the company recording hundreds of millions in new inflows surrounding its recent ex-dividend date. As long as this demand holds, Saylor appears committed to maintaining the firm's aggressive expansion.
Bitcoin prices have shown signs of recovery, trading at $71,800 on Monday. This represents a 7.9% gain over the past week, marking the fourth consecutive day the price has held above the $70,000 mark following the announcement of a ceasefire in the Iran conflict.
