"₿ig week" — With this brief update, Michael Saylor signaled on social media that Strategy (formerly MicroStrategy) was gearing up for another major Bitcoin acquisition.
During the week ending November 16, the publicly traded US company purchased an additional 8,178 Bitcoins, valued at roughly $835.6 million.
Just recently, the company also acquired 487 Bitcoins. Even as the Bitcoin price dropped nearly 30% from its October highs, Strategy has remained committed to its "buy and hold" Bitcoin strategy, which began in August 2020.
01 Ongoing Accumulation
Strategy’s latest Bitcoin purchase totaled 8,178 coins, at an aggregate price of approximately $835.6 million, with an average purchase price of $102,171 per Bitcoin.
This acquisition brings Strategy’s total Bitcoin holdings to 649,870 coins, with a cumulative purchase cost of about $4.84 billion and an average cost of $74,433 per Bitcoin.
At current market prices, the value of these Bitcoins far exceeds their acquisition cost.
02 Financing Methods
Unlike its earlier purchases, which were primarily funded through common stock issuances, Strategy has recently relied more on preferred stock offerings to raise capital.
The funds for this latest purchase mainly came from the company’s recent euro-denominated preferred stock issuance.
Last Thursday, the company completed the sale of €620 million (approximately $716.8 million) in euro-denominated perpetual preferred stock.
Strategy issued 7.75 million shares of 10% Series A perpetual streaming preferred stock, netting $703.9 million after fees—double the company’s original €350 million target.
03 Market Context
Strategy’s large-scale purchase comes at a time of extreme volatility in the cryptocurrency market. As of November 18, Bitcoin’s price had fallen below the $90,000 mark, down nearly 30% from its record high in early October.
This decline erased all of Bitcoin’s gains for the year, running counter to earlier market expectations that deeper Wall Street involvement, more favorable White House policies, and the rise of mainstream exchange-traded funds (ETFs) would stabilize the market.
Market sentiment shifted rapidly and dramatically. In the options market, demand for downside protection—especially at the $90,000, $85,000, and $80,000 levels—has surged.
More than $740 million in put contracts are set to expire at the end of November, significantly outpacing call option volumes.
04 Strategic Evolution
Led by Michael Saylor, Strategy began buying Bitcoin in August 2020, transforming the company from a business intelligence firm into a leveraged Bitcoin investment vehicle.
Since then, the company’s stock price has soared over 1,500%, far outperforming the S&P 500’s gains over the same period.
Saylor initially funded Bitcoin purchases by selling common stock. As investor concerns over equity dilution eroded the premium on common shares, the company shifted to convertible bonds and eventually to preferred stock.
The power of this digital asset treasury model hinges on an expanding market net asset value premium and a confidence feedback loop—mechanisms that now appear to be weakening.
05 Valuation Shifts
As Bitcoin’s price has fallen, the premium on Strategy’s Bitcoin reserves has narrowed sharply. The company’s mNAV (market value to Bitcoin holdings ratio) has plummeted from above 2.5 to around 1.2.
This premium once made Strategy a high-beta proxy for Bitcoin, but it has now dropped too low to attract the same momentum-driven investors—undermining the virtuous cycle that previously fueled its rise.
Since reaching its all-time high of $473.83 on November 20, 2024, the stock has dropped roughly 57%.
In Monday’s early trading, MSTR shares stood at $199, and the company’s enterprise value now barely exceeds the value of its Bitcoin holdings on the balance sheet, making new common stock issuance dilutive for existing shareholders.
06 Industry Impact
Strategy has become the largest corporate Bitcoin holder among 194 publicly traded companies that have adopted some form of Bitcoin acquisition model.
Other major corporate holders include MARA, Tether-backed Twenty One, Metaplanet, Adam Back, and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company.
Valuations for these digital asset wrapper companies have also shrunk, with firms such as BitMine Immersion Technologies Inc., Nakamoto Holdings Inc., and ETHZilla all affected by the market downturn.
07 Market Perspectives
Investors are now grappling with broader macroeconomic concerns. Traders are closely watching Nvidia’s upcoming quarterly earnings and the rapidly shifting expectations for a Federal Reserve rate cut next month.
Uncertainty over Fed rate cuts has triggered risk-off sentiment. Investors are increasingly skeptical that the Fed will lower rates at its December meeting.
Fed officials, including Chair Jerome Powell, have signaled reluctance to ease further, leaving investors unsure about the central bank’s next move.
Stalled Bitcoin ETF inflows and waves of liquidations have added to the pressure. As volatility rises, institutional buyers have pulled back, and weaker inflows into spot Bitcoin ETFs have contributed to the decline.
Earlier this month, the crypto derivatives market saw a series of heavy liquidation waves, with billions of dollars in leveraged positions wiped out.
Outlook
According to Bitcoin treasury data, 194 listed companies have now adopted some form of Bitcoin acquisition strategy. Behind them are many more companies watching from the sidelines. When the market rebounds, the blueprint established by pioneers like Strategy will likely become a model for future entrants.
For individual investors, Gate’s exchange offers Gate Wrapped BTC (GTBTC) as an on-chain BTC yield-bearing asset, providing a way to participate in both CeFi and DeFi markets. However, any cryptocurrency investment requires careful risk assessment, especially in today’s highly volatile market environment.
