MicroStrategy Tops $63.46B BTC Holdings, Faces 'Death Spiral' Criticism
MicroStrategy's Bitcoin treasury reached a record $63.46B with 815,061 BTC, driven by last week’s 34,164 BTC, $2.54B purchase funded by preferred equity and share sales. Critics warn its 11.5% STRC dividend model could trigger a 'death spiral', forcing Bitcoin sales or capital raises that dilute shareholders.
1. Record Bitcoin Holdings
MicroStrategy's Bitcoin treasury reached $63.46 billion on April 26, marking a record level with a total of 815,061 BTC. The firm’s unrealized gain stands at approximately $1.9 billion above its $75,528 cost basis.
2. April Purchase and Funding
Last week the company acquired 34,164 BTC for $2.54 billion, its largest weekly purchase in 17 months. This acquisition was financed through a $2.18 billion sale of perpetual preferred equity (STRF) and $366 million of at-the-market share offerings.
3. STRC Dividend Model Criticism
Critics warn the firm’s 11.5% annualized STRC dividend may trigger a 'death spiral', requiring ongoing Bitcoin sales or capital raises to fund payouts. Sustained issuance of preferred shares could dilute common shareholders if market demand softens.