Strategy (MSTR) buys $255M BTC as rally faces demand concerns

Strategy (previously known as Microstrategy) expanded its Bitcoin holdings last week, purchasing an additional 3,273 BTC for approximately $255 million, even as analysts flagged concerns about the sustainability of the recent price rally.

The acquisition, disclosed in an 8-K filing with the US Securities and Exchange Commission, was made at an average price of $77,906 per bitcoin between April 20 and April 26.

The latest purchase brings Strategy’s total holdings to 818,334 BTC, valued at roughly $63.7 billion.

The company’s average purchase price stands at $75,537 per bitcoin, translating to a total cost basis of about $61.8 billion, including fees and expenses, according to co-founder and executive chairman Michael Saylor.

This stash represents about 3.9% of Bitcoin’s fixed 21 million supply, implying approximately $1.9 billion in unrealized gains at current prices.

Equity funding drives latest purchase

Unlike previous acquisitions, the latest Bitcoin buy was funded entirely through the sale of Strategy’s Class A common stock (MSTR).

The company sold 1,451,601 shares last week, raising approximately $255 million.

As of April 26, about $26.47 billion worth of MSTR shares remain available under its at-the-market (ATM) program.

These programs form part of Strategy’s broader “42/42” plan, which targets $84 billion in capital raises through equity and convertible notes for Bitcoin purchases through 2027.

Strategy has also expanded its funding toolkit with multiple preferred stock offerings, including STRK, STRC, STRF, and STRD, with respective ATM programs of $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion.

Notably, the latest purchase did not utilize STRC, a variable-rate preferred stock that has recently become a key funding source for Bitcoin acquisitions.

The company has proposed shifting STRC dividend payments from monthly to twice monthly, stating the move could “lead to reduced reinvestment lag, enhanced liquidity, market efficiency, and increased price stability.”

Saylor had hinted at the latest purchase ahead of time, posting an update on the firm’s Bitcoin tracker with the comment, “The beat goes on,” following its previous week’s acquisition of 34,164 BTC.

Bitcoin rally shows mixed signals

Bitcoin’s recent price action has presented conflicting signals.

While institutional participation appears strong, underlying demand metrics remain weak.

According to CryptoQuant CEO Ki Young Ju, “Bitcoin is currently futures-driven,” adding that “open interest is rising, but on-chain apparent demand remains net negative despite ETF inflows and Saylor buys.”

At the same time, BlackRock’s iShares Bitcoin Trust recorded $983 million in weekly inflows, its “highest level in six months,” highlighting a divergence between institutional flows and on-chain activity.

Derivatives markets have also played a significant role in recent volatility.

Bitcoin briefly approached $80,000 before retreating below $78,000, with heavy selling pressure cited as a key factor.

On-chain analyst Darkfost noted that roughly $1.2 billion in sell volume hit Binance’s order books within a single hour, with total selling pressure reaching about $1.35 billion across exchanges.

He added that funding rates have remained “deeply negative for several weeks,” recently hitting around -7%.

Corporate buying under scrutiny

Some analysts argue that the current rally may be driven by a narrow set of buyers rather than broad market participation.

Research from 10X Research suggests corporate demand, led by Strategy, has been a primary driver of Bitcoin’s recent gains, alongside modest inflows from stablecoins and ETFs.

This concentration has raised concerns about the durability of the rally, as it lacks synchronized growth across spot markets, leverage, and liquidity.

Critics have also weighed in on Strategy’s aggressive Bitcoin accumulation strategy.

Gold advocate Peter Schiff warned that Saylor’s approach could lead investors toward “financial ruin.”

He also argued that Strategy’s funding model has shifted from low-cost instruments to higher-yield offerings, claiming this reflects changing investor preferences.

Bitcoin was trading around $78,129, almost unchanged, up about 0.03% over the past 24 hours, even as retail sentiment remained broadly bullish.

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