Bitcoin powerhouse Strategy has added 6,220 BTC to its reserves, spending $739.8 million in cash at an average price of $118,940 per coin, according to a July 21 SEC filing.
The latest acquisition represents 13.82 days worth of new Bitcoin supply, or almost double the total BTC mined between July 14 and 20.
Meanwhile, this latest purchase brings Strategy’s total Bitcoin holdings to 607,770 BTC, acquired for roughly $43.61 billion at an average cost of $71,756 per coin. At current market prices, the company’s Bitcoin treasury is valued at $72 billion, locking in an unrealized profit of nearly $28 billion.
Strategy said it sold 1.64 million shares of its MSTR stock to fund the purchase, raising approximately $736.4 million. The company also disclosed minor divestments in STRK, STRF, and STRD shares, raising $3.9 million.
Warning for Strategy copycats
As more companies adopt Strategy’s Bitcoin treasury playbook, some analysts are beginning to caution about the move’s potential downsides.
James Check, lead analyst at Checkonchain, warned in a July 21 post on X that firms with aggressive Bitcoin strategies may be headed for trouble. He described the risk as akin to enduring “2012 Bitcoin-grade drawdowns with gold-grade duration.”
According to him, some firms may have already peaked, with their share premiums overextended to levels that may never be regained.
If such scenarios happened, he stated that those firms would:
“Get taken over, or sell the BTC to buy back their shares.”
His concerns echo that of VanEck’s head of digital assets research, Matthew Sigel, who has previously warned that several Bitcoin-heavy firms could face risks.
In a June 16 post on X, he criticized the widespread use of at-the-market (ATM) offerings to fund Bitcoin buys.
According to Sigel, companies can profitably issue new shares when their stock trades well above the value of their underlying assets, known as net asset value (NAV). This approach allows them to raise capital more efficiently, as seen with Michael Saylor’s Strategy, which used high share prices to fund large Bitcoin purchases through stock and bond sales.
However, this approach has limits. If the stock price slips close to NAV, issuing additional shares no longer creates value. Instead, it dilutes existing shareholders and weakens the investment case.
To mitigate these risks, Sigel recommended halting ATM programs when stock trades fall below 0.95 times NAV for 10 consecutive days, prioritizing buybacks when BTC rises but share prices lag, and launching strategic reviews if NAV discounts persist.
He also advised tying executive compensation to NAV per share growth rather than BTC accumulation or share count.
