MicroStrategy Buys $255M Bitcoin After $3.5B Spree as Supply Squeeze Looms
MicroStrategy purchased $255 million in Bitcoin last week, slowing after $3.5 billion in the prior two weeks, funding 3,273-coin acquisition via common stock sales. Galaxy Digital’s Mike Novogratz warns that MicroStrategy’s ongoing $4.1 billion April accumulation and $61 billion in holdings could outstrip available Bitcoin supply, risking a supply squeeze.
1. Week-on-Week Buying Slowdown
MicroStrategy purchased $255 million of Bitcoin in the week ending April 27, acquiring 3,273 coins and marking a slowdown after $3.5 billion in purchases over the prior two weeks. The company’s digital asset treasury now holds roughly $61 billion in Bitcoin.
2. Record April Accumulation Totals
During April, MicroStrategy spent about $4.1 billion on Bitcoin, its largest monthly outlay in a year, raising total holdings to approximately 815,061 BTC acquired at a cumulative cost of about $61.56 billion. This makes the firm the second-largest known corporate Bitcoin holder.
3. Shift in Financing Approach
The latest Bitcoin purchases were funded through the sale of common stock rather than the company’s perpetual preferred shares (STRC), representing a shift away from the novel financing instrument introduced last year to ease dilution concerns among common shareholders.
4. Potential Supply Squeeze Risk
Mike Novogratz, CEO of Galaxy Digital, has warned that the scale of institutional buying by MicroStrategy, combined with rising ETF demand, may outpace available Bitcoin supply, potentially creating a structural supply squeeze and tightening market liquidity.