MicroStrategy, led by Michael Saylor, expanded its massive Bitcoin stash once again last week with the purchase of an additional 520 Bitcoin. According to a company filing released Monday morning, the acquisition cost approximately $34.9 million. This latest purchase brings MicroStrategy’s total Bitcoin holdings to a staggering 847,363 BTC.
Fresh capital from stock sale
The company stated that the recent Bitcoin purchase was financed through the sale of common stock. MicroStrategy sold roughly 2.7 million shares of MSTR, raising about $335.5 million. Of this total, approximately $35 million was allocated specifically for Bitcoin acquisition, while the remaining $300 million was added to the company’s cash reserves.
As a result, MicroStrategy’s total cash reserve has now climbed to $1.4 billion. While the firm is primarily known for its enterprise software business, it has gained significant attention in recent years for aggressively accumulating Bitcoin on its balance sheet, a strategy closely watched by the market.
The latest disclosure shows that the $335.5 million raised from the sale of 2.7 million shares funded both the purchase of 520 Bitcoin and the strengthening of cash reserves.
Total cost and average purchase price
With this recent addition, MicroStrategy’s 847,363 BTC have a combined purchase price of around $64.01 billion. The company’s average cost per Bitcoin now stands at $75,651. Notably, the average price paid for the company’s latest acquisition was $67,068 per Bitcoin.
This suggests MicroStrategy’s average cost remains above current market levels due to previous high-priced purchases. Nevertheless, the company appears committed to its long-term policy of steadily accumulating Bitcoin, undeterred by short-term price movements.
Concerns mount over STRC preferred shares
The primary motive behind increasing liquidity, sources explained, was to enhance investor confidence regarding the company’s dividend payments on preferred shares trading under the STRC ticker. Recently, investors have raised questions about the resilience of this security.
A sharp selloff last Thursday drove the STRC share price below $83, setting a record low before recovering later in the day. By Monday morning, STRC shares had rebounded 2% to $90.43, but the price remains below the nominal $100 par value.
MicroStrategy’s ordinary shares (MSTR) also gained 3.5% on Monday. Meanwhile, Bitcoin’s own price approached the $65,000 mark, suggesting that markets are weighing the company’s new Bitcoin acquisition and enhanced cash buffer in tandem.
