While many are still hesitating about whether to buy the dip, Strategy (formerly MicroStrategy) has resumed its buying spree.
According to an 8-K filing submitted to the U.S. Securities and Exchange Commission, the company purchased 7,633 BTC between February 3 and February 9 at an average price of $97,255 per Bitcoin, amounting to approximately $742.4 million.
As of now, Strategy holds a total of 478,740 BTC, valued at over $46 billion. The average purchase price of these Bitcoins is $65,033 per BTC, with a total cost of approximately $31.1 billion.
This acquisition was made after Strategy raised funds through the sale of its Class A common stock and 8.00% Series A Perpetual Preferred Stock. As of February 9, approximately $41.7 billion worth of stock remains available for sale under their “21/21 Plan,” which aims to raise a total of $42 billion over three years through stock and fixed-income securities to purchase Bitcoin.
In other words, Strategy will continue buying more Bitcoin in the future.
Notably, Strategy recently rebranded and adopted a new logo incorporating the Bitcoin symbol, as shown below.
The “B” in the new logo represents the company’s 478,740 BTC holdings (valued at $46 billion), making it the largest publicly traded Bitcoin holder. However, the latest earnings report reveals that in Q4 2024, Strategy recorded a net loss of over $600 million, with a per-share loss of $3.03, far exceeding market expectations.
But that’s not our focus today. What we’re discussing is the future of the Bitcoin premium on Strategy’s stock — will it rise, fall, disappear, or even turn negative?
As of February 11, 2025, at 6:52 AM, Strategy’s market capitalization carries a 101% premium over its Bitcoin holdings, as shown in the chart above.
What Does This Premium Mean?
Simply put, buying MSTR stock means paying far more than the market value of the Bitcoin the company holds. If you invest $100 in MSTR stock, you are effectively buying only $50 worth of Bitcoin at current valuations.
Why Does This Premium Exist?
For the sake of discussion, let’s define the premium as one that includes both MSTR’s software business and its Bitcoin holdings, calculated as follows:
For example, at the current Bitcoin price of $97,496, MicroStrategy holds 47,874 BTC, giving it a total Bitcoin value of approximately $46.7 billion. With a market capitalization of $93.6 billion, MicroStrategy’s valuation is 2.01 times its Bitcoin holdings, meaning the current premium rate is 101%.
Defining MSTR’s Premium: The Bitcoin Dividend
To be precise, MSTR’s premium is not just a Bitcoin premium but a Bitcoin “channel dividend”, which I will explain further.
My Prediction for the Future of MSTR’s Premium
This premium will eventually disappear — and in extreme cases, it could even turn negative.
However, for existing shareholders, the current high premium is incredibly profitable. If they sell their MSTR shares now, they can buy twice as much Bitcoin, effectively getting it at a 50% discount.
If you want to spot the next “MSTR” early and enjoy the Bitcoin dividend, you first need to understand why and how MSTR’s Bitcoin premium exists.
