MicroStrategy added another 4,048 bitcoin (BTC) last week, spending just under $450 million at an average price of $110,981 per coin. The purchases lift the company’s publicly disclosed holdings to 636,505 BTC, worth roughly $70 billion at bitcoin’s recent price of about $109,400.
The company says the buys were funded primarily through sales of common stock, with various preferred share issuances covering the remainder. The filing with regulators is available in the company’s 8-K announcement outlining the transactions.
Why this is notable: MicroStrategy’s ongoing accumulation keeps it among the largest corporate holders of bitcoin and reinforces its long-running strategy of using the balance sheet to gain exposure to the asset. But the funding route has sparked debate: management earlier promised not to issue stock when the company’s mNAV — the ratio of the stock market valuation to the value of its bitcoin — fell below 2.5x. Recently, mNAV has narrowed to about 1.5x, and the decision to sell common shares has prompted concerns that new issuance could be dilutive to existing shareholders.
Investors should note the trade-offs: the purchases strengthen MicroStrategy’s bitcoin exposure and support the narrative of institutional adoption, but financing buys with equity can compress per-share value and provoke shareholder pushback. Shares were modestly lower in premarket trading following the disclosure.
Source: CoinDesk. Read the original coverage for full details.