MicroStrategy’s 717,131 BTC Holdings Underwater by $8,000 and Shares Diluted 313%
MicroStrategy holds 717,131 BTC at an average cost of $76,027 per coin, sitting underwater by about $8,000 against the current price of $68,000. Its shares outstanding have surged 313% since Q2 2020 to 314 million, and $7 billion in preferred stock yields over 10%, costing $888 million annually.
1. Company Chairman’s Million-Dollar Bitcoin Call
Michael Saylor reiterated his binary Bitcoin forecast of $0 or $1 million per coin, framing it as a high-risk, high-reward bet that underscores the company’s strategy focus on Bitcoin appreciation.
2. Bitcoin Holdings and Unrealized Loss
MicroStrategy holds 717,131 BTC acquired at a $76,027 average cost, equating to a $54.52 billion investment; at a current Bitcoin price of $68,000, the position is underwater by roughly $8,000 per coin.
3. Equity Dilution and Financing Strains
Shares outstanding ballooned from 76 million in Q2 2020 to 314 million today, diluting shareholders; the company raised $7 billion in preferred stock at over 10% rates, incurring $888 million in annual dividends alongside $8.2 billion of debt.
4. Technical Price Breakdown
MicroStrategy stock is trading roughly 20% above its $105-$110 capitulation low, faces overhead resistance at $137.88 (Parabolic SAR) and the 50-day EMA at $140.61, with immediate support at $125 and a critical $110-$115 zone.