MicroStrategy Scales Back Bitcoin Buys by Two-Thirds, Builds $1.4B Liquidity Reserve
MSTR•MicroStrategy bought 520 Bitcoin for $34.9 million in the week ended June 21, two-thirds fewer than the prior week’s 1,587 BTC at an average $67,068 per coin. It raised $335.5 million through ATM sales, allocated under 11% to Bitcoin and boosted its USD reserve to $1.4 billion for dividends and debt interest.
1. Weekly Bitcoin Purchases Cut
MicroStrategy acquired only 520 BTC for $34.9 million in the week ended June 21, down from 1,587 BTC the prior week. The average purchase price rose to $67,068 per coin, reflecting a marked slowdown in digital asset accumulation.
2. ATM Offerings and Reserve Build
The company generated $335.5 million through at-the-market stock offerings, using less than 11% of net proceeds for Bitcoin purchases. The remaining funds raised its USD liquidity reserve dedicated to preferred dividends and debt interest to $1.4 billion.
3. Preferred Shares Financing Concerns
Series A perpetual preferred shares (STRC) have traded below their $100 par value, eroding MicroStrategy’s low-cost financing mechanism for Bitcoin acquisitions. Continued discounts on STRC could hinder future purchases via preferred share issuances.
4. Balance Sheet Capacity and Outlook
MicroStrategy retains $25.4 billion of ATM offering capacity, including a $21 billion increase announced in March. This positions the company to resume substantial Bitcoin accumulation once its liquidity reserve objectives are achieved.
