MicroStrategy Hits $63.46 B Bitcoin Peak as Schiff Warns of Yield Spiral
MicroStrategy’s Bitcoin treasury reached a record $63.46 billion on April 26 with 815,061 BTC at a $75,528 average cost, including 34,164 coins bought last week for $2.54 billion financed by preferred equity and share sales. Peter Schiff warns the 11.5% preferred dividend model risks forced Bitcoin sales if issuance falters.
1. Record Bitcoin Treasury
MicroStrategy’s Bitcoin holdings rose to a record $63.46 billion on April 26, with 815,061 BTC at an average cost of $75,528 per coin and an unrealized gain of approximately $1.9 billion based on current spot prices.
2. April Bitcoin Purchases
Last week the firm acquired 34,164 BTC for $2.54 billion at an average price of $74,395, marking its most aggressive weekly buying spree in 17 months and increasing its share of corporate-held Bitcoin to roughly 75%.
3. Capital Market Financing
These purchases were funded by $2.18 billion raised through STRF perpetual preferred equity and $366 million from at-the-market common share sales, supporting a 9.5% Bitcoin yield year-to-date without issuing dilutive common stock.
4. Preferred Yield Risk Warning
Economist Peter Schiff warns that the 11.5% preferred dividend relies on continuous capital raises, arguing that any decline in issuance demand could force the company to sell Bitcoin, pressuring BTC prices and the company’s net asset value.