MicroStrategy Raises $377M Preferred to Fund $1.28B Bitcoin Purchase
MicroStrategy spent $1.28 billion on Bitcoin last week, boosting its holdings to about 738,750 BTC valued at $50.5 billion. The firm issued $377 million in STRC preferred shares and $900 million in common stock, marking its second-largest STRC issuance since July’s $2.5 billion debut.
1. Major Bitcoin Acquisition
MicroStrategy spent $1.28 billion on Bitcoin in its second-largest purchase of the year, boosting total holdings to around 738,750 BTC valued at $50.5 billion.
2. Preferred Share Funding
The firm raised $377 million through its STRC variable-rate preferred shares—its largest single STRC issuance since the $2.5 billion debut in July—while issuing $900 million in common stock.
3. Issuance Mechanism and Dividend
STRC shares carry an annualized dividend of 11.5% and are issued whenever the preferred share price exceeds $100, creating a built-in funding mechanism for incremental Bitcoin purchases.
4. Financial Position and Outlook
With an average Bitcoin cost basis of about $75,800, the company carries an unrealized loss near $5.5 billion; its stock has slid 58% over six months despite a 2.8% gain after this announcement.