MicroStrategy Pauses Bitcoin Buys After 13 Weeks as $42B Funding Plan Faces Pressure
MicroStrategy halted weekly Bitcoin acquisitions for the first time in 13 weeks ended March 29, pausing its crypto gauge. The pause coincides with a $42 billion capital plan equally split between Class A stock and 11.5% perpetual preferred shares, as share prices slump over 70% and preferred trades below par.
1. Halt in Bitcoin Acquisition
MicroStrategy did not purchase any Bitcoin during the week ended March 29, interrupting a string of 13 consecutive weekly acquisitions that investors use to gauge its crypto stance.
2. $42B Capital Plan Details
The company unveiled a $42 billion funding strategy split evenly between $21 billion in Class A stock and $21 billion in perpetual preferred shares carrying an 11.5% yield.
3. Funding Model Strains
With Class A shares down over 70% since late 2024 and preferred shares trading below $100 par value, MicroStrategy faces tighter access to incremental capital across its equity and debt layers.
4. Balance Sheet and Outlook
As of March 29, the firm holds about 762,000 Bitcoin at an average cost near $75,700 and maintains $2.25 billion in cash, relying on Bitcoin appreciation to outpace funding costs.