MicroStrategy’s Bitcoin Hoard Reaches $63.46 Billion as Yield Model Draws Death Spiral Warnings
MicroStrategy’s Bitcoin treasury reached a record $63.46 billion with 815,061 BTC at an average cost of $75,528 per coin after a 34,164 BTC purchase worth $2.54 billion last week. Critics warn its 11.5% STRC yield model risks a ‘death spiral’ without fresh capital or BTC sales.
1. Record Bitcoin Treasury Highs
MicroStrategy holds 815,061 BTC across 107 purchase events, valuing its treasury at $63.46 billion as of April 26. The company’s cost basis sits at $75,528 per coin, yielding an unrealized gain of $1.9 billion or 3.08% above its aggregate purchase price.
2. April Buying Spree and Financing
In its most aggressive month of buying in 17 months, MicroStrategy added 34,164 BTC for $2.54 billion at an average price of $74,395. This acquisition was funded by $2.18 billion of STRF perpetual preferred equity and $366 million from at-the-market sales of common shares.
3. STRC Yield Model Risks and Criticism
The firm’s STRC preferred shares carry an 11.5% variable dividend, up from 9% at launch, and underpin its Bitcoin accumulation strategy. Critics warn that sustaining payouts without selling Bitcoin or constant capital raises could force the company into a ‘death spiral’ if market demand for new issuance wanes.