- MicroStrategy diluted all four of its classes of public securities in one week to raise funds for Bitcoin (BTC) purchases.
- The company generated $472 million by selling shares at-the-market, then used these proceeds to buy 4,225 BTC.
- MicroStrategy’s BTC holdings now total 601,550 BTC, accounting for 2.9% of bitcoin’s total supply.
- The company’s shares are currently trading at 1.7 times the value of its BTC treasury.
- The average purchase price for MicroStrategy’s latest BTC buy was $111,827, with all coins now in profit.
MicroStrategy recently announced that, for the first time, it diluted all four classes of its public securities in a single week in order to fund additional bitcoin (BTC) purchases. This move involved liquidating both common and preferred shares and then immediately using the proceeds to buy more BTC.
The firm made $472 million from at-the-market (ATM) sales of MSTR common stock as well as STRK, STRF, and STRD preferred shares, according to SEC filings. After selling a total of 797,008 MSTR shares, 573,976 STRK, 444,005 STRF, and 158,278 STRD, the company bought 4,225 BTC at an average cost of $111,827 per coin.
This approach is described as accretive dilution, as selling shares at a premium allowed MicroStrategy to purchase slightly more bitcoin than the gross cash raised. As stated by the company, “this exercise of diluting shareholders to buy BTC has become commonplace at MicroStrategy.”
Market data shows MicroStrategy now holds 601,550 BTC—about 2.9% of bitcoin’s total supply cap of 21 million coins. Entities with larger single holdings include BlackRock’s IBIT ETF and Satoshi Nakamoto. MicroStrategy also now owns more BTC than leading exchange Binance.com/en/proof-of-reserves” target=”_blank” rel=”noreferrer noopener”>Binance.
The company’s stock continues to trade at a 1.7 times multiple to its $72 billion BTC treasury, suggesting sustained investor optimism. The average all-time purchase price across its holdings is $71,268 per BTC, putting MicroStrategy‘s unrealized gains at over 68% following recent price increases.
The preferred shares STRK, STRF, and STRD sold in this round yield dividends and have payout priority over common stock but rank below debt holders. Last week’s BTC purchase by MicroStrategy proved profitable as bitcoin’s price climbed past $122,000 after the acquisition.
For more details, see the company’s SEC filings and the most recent 8-K disclosure.
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