Strategy Adds Over 10K BTC to Its Bitcoin Treasury, Funded by New STRD Offering
MicroStrategy’s Significant Bitcoin Acquisition and Funding Strategy
MicroStrategy (MSTR), a prominent enterprise software provider and the largest corporate holder of Bitcoin (BTC), has significantly increased its Bitcoin holdings. The company recently acquired an additional 10,100 BTC, bringing its total Bitcoin holdings to a substantial 592,100 BTC. Based on the current market price of approximately $107,000 per Bitcoin, this portfolio is now valued at roughly $63.3 billion. This acquisition represents a considerable commitment to Bitcoin as a long-term investment strategy.
The average purchase price across MicroStrategy’s entire Bitcoin holdings now stands at $70,666, indicating a diverse acquisition strategy over time, likely reflecting varying market conditions. This average cost basis is significantly lower than the current market price, suggesting a potentially substantial unrealized gain for the company.
Funding for this significant Bitcoin purchase was secured through a multifaceted approach. A primary source was the proceeds from a recent issuance of its 10% Series A Perpetual Stride Preferred Stock (STRD). This offering, targeting long-term investors seeking high-yield fixed-income opportunities, generated approximately $979.7 million in net proceeds after fees and expenses. The offering consisted of 11.76 million shares.
In addition to the STRD issuance, MicroStrategy utilized an at-the-market (ATM) share sale program. This program involved the sale of other preferred stock classes, specifically STRK and STRF. Between June 9th and June 15th, the company raised an undisclosed amount (TKTK) through these equity offerings. The combination of proceeds from the STRD issuance and the ATM share sale program provided the necessary capital for the large Bitcoin acquisition.
The strategic move by MicroStrategy highlights the company’s ongoing commitment to Bitcoin as a core component of its investment strategy. The significant increase in holdings, combined with the utilization of diverse funding mechanisms, underscores the company’s confidence in Bitcoin’s long-term potential. The market reacted positively, with MSTR shares showing a 1.60% increase in pre-market trading, while Bitcoin maintained its price near $107,000. This transaction further solidifies MicroStrategy’s position as a major player in the corporate Bitcoin landscape.
