MicroStrategy Issues $227M STRC Shares to Fund 4,871 BTC Purchase
MicroStrategy issued $227 million of STRC preferred shares to buy 4,871 BTC for $330 million at $67,700 each, boosting its holdings to 766,970 coins and cutting its cost basis. It posted a $14.46 billion first-quarter mark-to-market loss, leaving its crypto treasury $4.9 billion underwater.
1. Bitcoin Purchase
MicroStrategy acquired 4,871 Bitcoin for approximately $330 million at an average price of $67,700, raising its total holdings to 766,970 BTC. Each purchase below its blended cost basis of $75,644 per coin further lowers the firm's average acquisition price.
2. STRC Preferred Share Issuance
The company funded the latest Bitcoin purchase by issuing $227 million of STRC preferred shares. This variable-rate product is triggered when its market price exceeds $100 par value, enabling continued funding of BTC accumulation.
3. First-Quarter Mark-to-Market Loss
In the first quarter, MicroStrategy recorded a $14.46 billion mark-to-market loss on its Bitcoin holdings, resulting in $4.9 billion of unrealized losses. This valuation decline contributed to the firm’s equity trading below its net asset value.