MicroStrategy Buys $1B Bitcoin, Holdings Reach 781,000 Coins Worth $55.3B
MicroStrategy spent $1 billion in preferred‐share proceeds to buy 13,927 Bitcoin at $71,902 apiece, raising its holdings 1.8% to 781,000 BTC worth $55.3 billion. Its 11.5%‐yielding STRC preferred stock funds these purchases and breakeven annual Bitcoin growth of 2.05% covers $1.2 billion in dividend obligations indefinitely.
1. $1 Billion Bitcoin Acquisition
MicroStrategy deployed $1 billion raised through its STRC preferred shares to acquire 13,927 Bitcoin at an average price of $71,902, boosting its total holdings by 1.8% to approximately 781,000 BTC.
2. STRC Preferred‐Share Funding
The firm has issued $3.55 billion of its variable‐rate Series A perpetual preferred stock, STRC, which yields 11.5% monthly and trades near $100 par, using all proceeds exclusively to fund Bitcoin purchases without tapping common‐share liquidity.
3. Breakeven Analysis and Dividend Coverage
At a 2.05% annualized Bitcoin appreciation rate, MicroStrategy’s digital‐asset portfolio can indefinitely cover its roughly $1.2 billion in annual STRC dividend obligations, with current reserves providing about 48.7 years of coverage at that threshold.
4. Proximity to BlackRock’s ETF Holdings
With nearly 781,000 Bitcoin on its balance sheet, MicroStrategy sits just below BlackRock’s spot Bitcoin ETF holding of about 790,000 BTC, needing roughly 9,000 more coins to surpass the leading institutional holder.