Key Takeaways
- MicroStrategy purchased 34,164 BTC for $2.54 billion during the previous week, marking its third-largest acquisition to date.
- The company paid an average of $74,395 per bitcoin, increasing its total reserves to 815,061 BTC.
- Cumulative bitcoin expenditure has reached approximately $61.56 billion, with an average acquisition cost of $75,527 per coin.
- Funding came from $366 million in common stock offerings and $2.2 million from preferred stock (STRC) sales.
- MSTR shares declined more than 2.5% in pre-market trading and have fallen 48% year-over-year.
MicroStrategy expanded its bitcoin treasury substantially last week, acquiring 34,164 BTC in a transaction valued at approximately $2.54 billion. This represents the company’s third-largest single bitcoin acquisition in its history.
The transaction was revealed through a regulatory filing released Monday. The purchase price averaged $74,395 for each bitcoin.
Following this acquisition, MicroStrategy’s bitcoin reserves have grown to 815,061 BTC. The firm has invested roughly $61.56 billion to accumulate this position, with an average per-coin cost of $75,527.
Given that bitcoin was valued at approximately $75,000 when the filing was submitted, MicroStrategy’s entire bitcoin portfolio sits near breakeven.
The corporation has been accumulating bitcoin since 2020, following a strategic shift from its traditional software operations to adopt BTC as its principal treasury reserve asset. MicroStrategy maintains its position as the world’s largest publicly traded corporate bitcoin holder.
Financing the Latest Acquisition
The recent bitcoin purchase wasn’t financed solely from existing cash reserves. MicroStrategy generated $366 million through common stock issuances and another $2.2 million via sales of its perpetual preferred stock, Stretch (STRC).
This equity-based financing model — issuing shares to fund bitcoin acquisitions — has become the firm’s established operational strategy. It enables continuous bitcoin accumulation without incurring conventional debt obligations.
STRC shares increased 0.12% after the announcement, while MSTR stock declined over 2.5% during pre-market hours Monday.
Market Response to MSTR Stock
Notwithstanding the significant purchase volume, investor reaction was subdued and marginally negative.
MSTR was valued at $166.52 per share at the filing’s publication time. The stock surged more than 10% on April 17 following reports that the company had achieved breakeven status on its bitcoin position.
However, this uptick hasn’t offset the extended downward trend. MSTR has depreciated 48% over the trailing twelve months.
The stock’s trajectory closely mirrors bitcoin’s price movements. When BTC experiences volatility, MSTR typically exhibits amplified movement in the corresponding direction — during both rallies and corrections.
Strategy’s preferred stock offerings, including STRC and STRD, have provided the company with supplementary capital-raising mechanisms. STRD appreciated 0.53% after Monday’s announcement.
STRF, an additional preferred security, decreased 0.28% during the same timeframe.
The company currently maintains ownership of more than 815,000 bitcoin. At a $75,000 BTC valuation, this holding represents approximately $61.1 billion in value.
Bitcoin was trading around $75,000 at the Monday filing’s release, positioning MicroStrategy’s complete holdings at approximately breakeven relative to its average cost basis of $75,527 per bitcoin.
