Strategy is signaling another significant Bitcoin purchase, with co-founder Michael Saylor teasing a "think bigger" announcement. This follows a period where the company acquired nearly three times more Bitcoin than miners produced in March.
Currently, Strategy holds 766,970 Bitcoin, acquired at an average price of $75,644. This position represents approximately $14.5 billion in unrealized losses. Despite this, the company continues its accumulation strategy, significantly outpacing new Bitcoin supply. In March alone, Strategy bought 46,233 BTC, while global miners produced roughly 16,200 BTC.
The funding for this aggressive accumulation comes from Strategy's STRC preferred equity product. This product requires an annual Bitcoin return of just 2.05% to cover its dividends. This low hurdle rate highlights both the attractiveness and potential vulnerability of the funding model, particularly if Bitcoin prices stagnate or decline significantly over time.