MicroStrategy’s Bitcoin Treasury Hits $63.46B Record After $2.54B Purchase
MicroStrategy’s Bitcoin treasury reached a record $63.46 billion with 815,061 BTC at a $75,528 cost basis after adding 34,164 BTC for $2.54 billion last week funded by $2.18 billion in preferred equity and $366 million ATM sales. Critic Peter Schiff warns the 11.5% preferred yield could force BTC sales or dilutive capital raises, risking a funding spiral.
1. Record Bitcoin Treasury
MicroStrategy controls 815,061 BTC with a total treasury value of $63.46 billion and a cost basis of $75,528 per coin, generating an unrealized gain of roughly $1.9 billion at current prices.
2. April Purchase and Financing
In the company’s most aggressive buying month in over a year, MicroStrategy added 34,164 BTC for approximately $2.54 billion at an average of $74,395 per coin, funding the acquisition via $2.18 billion in perpetual preferred equity and $366 million through at-the-market common share sales.
3. Yield Model Criticism
Economist Peter Schiff warns MicroStrategy’s 11.5% variable dividend on its preferred shares hinges on either selling Bitcoin or continually issuing new shares, a structure he says could force distressed BTC sales or dilute shareholders if market appetite wanes.