Bitcoin Evangelist Continues Aggressive Accumulation Strategy
MicroStrategy, led by staunch Bitcoin advocate Michael Saylor, has purchased an additional 4,980 BTC for $531.9 million at an average price of $106,801 per coin. This brings their total holdings to 597,325 BTC (~2.8% of circulating supply) with an average cost basis of $70,982.
Saylor reiterated his long-term bullish stance on X: "By 2025, you'll only wish you'd bought more Bitcoin." This marks another execution of MicroStrategy's "buy-and-hold indefinitely" strategy established in 2020.
Funding the Purchase Through Capital Markets
The acquisition was funded through three existing "at-the-market" (ATM) offering programs:
- MSTR Common Stock: Sold 1.35M shares ($519.5M raised, $19.5B remaining capacity)
- 8% Series STRK Preferred Stock: Sold 276,071 shares ($28.9M raised)
- 10% Series STRF Preferred Stock: Sold 284,225 shares ($29.7M raised)
Total proceeds of $578.1 million also covered preferred stock dividends due June 30. The company retains ~$406B in combined funding capacity across these channels.
Key Strategic Considerations
Growth Opportunities
- Remaining $406B funding capacity supports continued BTC accumulation
- Recent inclusion in Russell Top 200 Value Index increases institutional visibility
Potential Challenges
- 8-10% dividend yields on preferred shares create cash flow obligations
- Common stock dilution concerns for existing shareholders
- Bitcoin price volatility may impact corporate treasury strategy
Market Performance Snapshot
| Metric | Value |
|---|---|
| YTD Stock Performance | +34% |
| June 30 Stock Movement | +5.3% |
| Current Market Cap | $112.9B |
| BTC Price (30-day avg) | $107,000 |
Bitcoin has traded sideways near $107K for over a week without clear directional momentum.
FAQ: MicroStrategy's Bitcoin Strategy
Q: How does MicroStrategy benefit from buying Bitcoin?
A: The company treats BTC as a primary treasury reserve asset, believing its scarcity and adoption curve will drive long-term appreciation that outweighs traditional cash holdings.
Q: What risks does this strategy carry?
A: Key risks include BTC price volatility, rising dividend obligations on preferred shares, and shareholder dilution from equity offerings.
Q: Could MicroStrategy sell its Bitcoin holdings?
A: Saylor has consistently stated they have "no plans to sell" and may only consider selling if BTC appreciates dramatically beyond their long-term models.
Q: How does this impact Bitcoin's overall market?
A: As the largest corporate holder, MicroStrategy's continued purchases reduce circulating supply while validating BTC's institutional investment thesis.
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