MicroStrategy Spends $2.01 Billion on 24,869 Bitcoin, Holdings Reach 843,738
MicroStrategy acquired 24,869 Bitcoin for $2.01 billion at an average price of $80,985 each, raising total holdings to 843,738 tokens with a cost basis of $75,700. The acquisition was funded almost entirely through high-yield preferred stock sales, potentially increasing equity dilution and altering capital structure.
1. Acquisition Details
Over the past week, MicroStrategy executed a $2.01 billion purchase of 24,869 Bitcoin at an average price of $80,985 per token, marking one of the largest single-week additions to its crypto treasury.
2. Funding Mechanism
The company financed the Bitcoin acquisition almost entirely through the issuance and sale of its high-yield preferred stock, leveraging its capital markets activity rather than deploying cash on hand.
3. Updated Bitcoin Holdings
With the new purchase, MicroStrategy’s total Bitcoin holdings stand at 843,738 tokens, held at an aggregate cost basis of $75,700 per Bitcoin, reflecting a strategic accumulation as prices fluctuate.
4. Capital Structure Implications
Relying on preferred stock sales to fund crypto purchases may increase equity dilution and impact future earnings per share, while shifting the company’s debt-to-equity ratio and overall leverage profile.