Strategy Inc. did not add to its bitcoin holdings during the week that ended March 29, according to a Securities and Exchange Commission filing made public on Monday. The absence of new purchases breaks a 13-week run in which the company had reported weekly bitcoin acquisitions.
The filing also shows no share sales under Strategy's at-the-market (ATM) offering during the March 23-29 window. The company continues to report the scale of its digital-asset position: as of March 29 it held approximately 762,099 bitcoin. Those coins were bought at an aggregate cost of $57.69 billion, which implies an average acquisition price of about $75,694 per bitcoin including fees and expenses.
The pause in weekly buying comes shortly after Strategy announced plans to raise capital through large open-market offerings. The planned raise totals $42 billion, split evenly between $21 billion of Class A common stock and $21 billion of perpetual preferred shares. The company has financed previous bitcoin purchases through a mix of debt, preferred stock and common equity issuance.
Market moves in the same reporting week were modest: bitcoin's price declined 2.4% over the seven-day period that ended March 29. Strategy's public disclosures of weekly bitcoin acquisitions have become a regularly watched data point for market participants tracking demand from a major corporate holder.
Strategy's funding approach has been multi-layered. Management has alternated between selling common stock and issuing preferred shares depending on market conditions and investor demand. The company notes that selling common stock dilutes existing shareholders by reducing their percentage ownership. By contrast, issuing preferred shares can preserve existing ownership stakes but results in fixed obligations for the company.
For the week covered by the filing, the company neither expanded its bitcoin stash nor sold shares via its ATM facility. The filing leaves unchanged the total reported bitcoin balance and the aggregate purchase cost reported at quarter-end.
Summary
Strategy paused weekly bitcoin buys after 13 consecutive weeks and reported no ATM share sales during March 23-29. Its holdings stood at roughly 762,099 bitcoin bought for $57.69 billion, averaging about $75,694 per coin. The pause follows an announcement to raise $42 billion through open-market offerings of common and perpetual preferred shares. Bitcoin fell 2.4% over the seven-day reporting period.
Key points
- Strategy halted its 13-week streak of bitcoin purchases for the week ended March 29, signaling a temporary pause in its weekly accumulation program.
- The company reported no share sales under its ATM program during March 23-29 while planning concurrent $21 billion common and $21 billion preferred open-market offerings.
- Sectors affected include digital assets and cryptocurrency markets, equity markets where dilution and capital raising matter, and capital markets involved in large-scale securities issuance.
Risks and uncertainties
- Share dilution risk: Selling additional common stock to fund bitcoin purchases reduces existing shareholders' ownership percentages.
- Fixed obligation risk: Issuing perpetual preferred shares avoids dilution but creates fixed payment obligations for the company.
- Market volatility: Bitcoin's 2.4% decline in the seven days to March 29 highlights price volatility that can affect the value of the company's holdings and funding decisions.