MicroStrategy Raises $377 Million via STRC to Fund $1.28 Billion Bitcoin Purchase
MicroStrategy spent $1.28 billion on Bitcoin last week, its largest single purchase in over a month, partly funded by issuing $377 million of its variable-rate STRC preferred shares yielding 11.5% annualized. The company now holds about 738,750 BTC worth $50.5 billion and has raised $3.8 billion via STRC to date.
1. Bitcoin Acquisition
MicroStrategy invested $1.28 billion in Bitcoin last week, marking its largest single purchase in over a month and bringing total holdings to about 738,750 BTC.
2. STRC Preferred Share Issuance
The company issued $377 million of its variable-rate STRC preferred shares, currently yielding an annualized 11.5%, raising the total STRC issuance to $3.8 billion since launch.
3. Valuation and Unrealized Loss
At a market price near $68,500, the Bitcoin stake is valued at approximately $50.5 billion, compared with an average purchase price of $75,800 and an unrealized loss of about $5.5 billion.
4. Stock Performance
MicroStrategy’s stock rose 2.8% on the announcement to $137, though shares remain down 58% over the past six months amid rising financing costs and market scrutiny.