Strategy Holds 843,775 BTC, Changes Financial Strategy Calculation

The competitive axis of publicly listed companies holding large amounts of Bitcoin (BTC) is shifting from total holdings to per-share holdings and capital procurement structure. Strategy ($MSTR) and Metaplanet (3350) have put forward a financial strategy that considers issuance, dividends, reserves, and dilution effects alongside the direction of BTC prices.

In an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on July 6, Strategy revealed that as of 5 AM Korean time on July 6, it held 843,775 BTC. The company explained in the same document that it sold 3,588 BTC from June 29 to July 5, using the proceeds of $216 million (approximately 30.56 billion KRW) for preferred stock dividends and bolstering dollar reserves.

This announcement shows that Strategy's Bitcoin strategy can no longer be simply explained as a continuous buying approach. The company also indicated that as of July 5, its dollar reserves stood at $2.55 billion (approximately 36.08 trillion KRW). BTC is being used not only as a holding asset but also as a liquidity tool to manage dividend and debt burdens.

In its 10-Q document as of March 31, Strategy also left open the possibility of market issuance of common and preferred stocks, additional procurement utilizing assets, generating revenue through BTC holdings, and regular BTC sales for general corporate purposes. The figures investors should focus on include not only the total amount of BTC held but also the number of shares issued, procurement costs, and the burden of preferred stock dividends.

Metaplanet is also advancing a similar logic. The company's public page currently shows a holding of 43,000 BTC. In a public letter, Metaplanet presented per-share Bitcoin as a key performance indicator and described itself not merely as a digital asset holding vehicle but as an operating company.

Per-share Bitcoin is an indicator that divides the BTC held by the company by the number of shares. Even if the company buys more BTC, if the issuance of shares increases faster, the per-share BTC may decrease. This is why it is essential to consider dilution alongside total holdings when evaluating Bitcoin financial companies.

Metaplanet's claims are also intertwined with discussions about index inclusion on the Tokyo Stock Exchange. The company has emphasized that it is not a passive investment vehicle but an operating company, responding to the controversy over index inclusion. This message is interpreted as indicating that for Japanese stock market investors, cumulative efficiency considering dilution is more important than the amount of BTC held itself.

Market interpretations vary. Galaxy Research analyzed that the Bitcoin financial company model operates when the stock receives a premium over the net asset value of the BTC held. If the premium collapses, stock issuance could become a factor that dilutes shareholder value rather than a mechanism for increasing holdings.

Galaxy described this structure by stating that after the collapse of the premium, "the entire flywheel turns in the opposite direction." When the stock price premium is maintained, it is possible to buy more BTC with the funds raised from issuance, but if the premium disappears, the same approach could become a burden for existing shareholders.

On the other hand, CoinShares noted in its research on May 29 that digital asset financial companies have increased their cryptocurrency exposure even amid weak token prices. CoinShares viewed Strategy's repurchase of $1.38 billion (approximately 1.95 trillion KRW) of convertible bonds maturing in 2029, reducing the balance from $8.2 billion (approximately 11.6 trillion KRW) to $6.7 billion (approximately 9.48 trillion KRW), as a positive credit factor for the preferred stock structure.

For domestic investors, this issue is more about how to interpret Bitcoin-related stocks rather than BTC price articles. We previously reported on the decline of Strategy's mNAV and the premium debate. The issues at that time also revolved around the gap between the value of held BTC and stock value, and how that gap would change the sustainability of the financial strategy model.

Recently, reports have emerged that MSCI is considering the establishment of a clause to exclude non-operating companies, which could shake the index inclusion of Strategy and Metaplanet, placing this in the same context. When index inclusion, stock issuance, preferred stock dividends, and dollar reserves move together, it becomes challenging to explain corporate value based solely on the number of BTC held.

The commonality between Strategy and Metaplanet is that they place BTC at the center of their financial statements. The difference lies in how they maintain this. Strategy operates a complex structure that includes preferred stock and dollar reserves, while Metaplanet emphasizes the per-share Bitcoin metric and operating company logic.

In this model, the interests are not simple. The company can increase its BTC holdings through stock and preferred stock issuance, but existing shareholders may bear dilution burdens depending on issuance conditions and whether the premium is maintained. Creditors and preferred stock investors may place greater importance on cash reserves and dividend payment capabilities than on BTC prices.

The impact of the strategies of the two companies on shareholder value and the BTC market will depend on the issuance scale, holdings, and changes in reserves confirmed in future disclosures. Currently confirmed figures are 843,775 BTC for Strategy as of 5 AM Korean time on July 6, and 43,000 BTC according to Metaplanet's public page.