MicroStrategy Adds 8,178 Bitcoin in $835.6 Million Purchase Funded by Preferred Stock Issuances
MicroStrategy, under Michael Saylor's leadership, purchased an additional 8,178 Bitcoin last week at an average price of $102,171 per BTC, totaling approximately $835.6 million. This latest acquisition brings the company's total bitcoin holdings to 649,870 BTC, acquired at an average cost of about $74,433 each, representing a total investment of approximately $48.37 billion.
The recent purchase was funded primarily through preferred stock issuances, including STRE (Steam) and STRC (Stretch), which raised about $715 million and $131.4 million respectively. Due to a roughly 56% decline in MicroStrategy's common stock over the past four months and an enterprise value of around $199 per share closely aligned with the bitcoin held on the balance sheet, issuing additional common shares would be dilutive. As a result, the company constrained common-share offerings in favor of preferred stock financing.
The bitcoin price was around $94,500 on Monday, a slight decrease from the previous Friday. MicroStrategy's ongoing pattern of regular bitcoin purchases continues, now primarily financed through preferred stock rather than common shares.
