MicroStrategy (MSTR) Executes $2.54B Bitcoin Purchase, Becomes Largest Public Holder

MicroStrategy (MSTR) has completed one of its largest single bitcoin acquisitions, adding 34,164 BTC to its treasury for approximately $2.54 billion. The purchase, disclosed in a Monday regulatory filing, was executed at an average price of $74,395 per bitcoin.

This acquisition brings MicroStrategy’s total bitcoin holdings to 815,061 BTC, valued at roughly $61.56 billion based on an average cost basis of $75,527 per coin. The firm now holds more bitcoin than any other publicly traded company, surpassing BlackRock’s 802,823 BTC, primarily held through its spot bitcoin ETF products.

MicroStrategy Overtakes BlackRock in Bitcoin Holdings

With this latest purchase, MicroStrategy has become the largest public holder of bitcoin. The firm, led by Executive Chairman Michael Saylor, now holds:

• 815,061 BTC (MicroStrategy)
• 802,823 BTC (BlackRock)

Saylor had hinted at the move over the weekend, posting a message urging observers to “think even bigger,” a phrase associated with the company’s ongoing bitcoin accumulation strategy.

Financing the Bitcoin Acquisition

The $2.54 billion purchase was financed through a combination of equity issuance and preferred stock sales. MicroStrategy raised:

• $366 million through the sale of common shares
• $2.18 billion via its perpetual preferred stock offering, known as STRC

The STRC instrument has become a key funding mechanism for recent acquisitions. The preferred stock features a variable dividend structure designed to maintain a price near par value while offering an annualized yield of approximately 11.5%.

In a recent proposal, the company suggested shifting dividend payments from monthly to semi-monthly to improve liquidity and reduce reinvestment delays.

Expanding Capital Raising Capacity

MicroStrategy continues to expand its capital-raising capacity, with billions of dollars in additional common and preferred shares authorized for issuance under existing programs. These efforts are part of a broader strategy to fund further bitcoin purchases through 2027.

The scale of MicroStrategy’s holdings now represents more than 3.8% of bitcoin’s fixed supply of 21 million coins, underscoring the firm’s significant influence in the market.

Market Reaction and Future Outlook

Shares of MicroStrategy declined approximately 2.5% in pre-market trading following the announcement, reflecting investor sensitivity to both bitcoin price movements and the company’s reliance on capital markets to fund acquisitions.

With bitcoin trading near $75,000, the firm’s position sits close to its aggregate purchase price, leaving holdings near break-even after recent market volatility. The latest acquisition marks MicroStrategy’s third-largest bitcoin purchase and its most aggressive accumulation since late 2024.

MicroStrategy remains committed to its balance sheet strategy, first introduced in 2020, positioning itself as the largest publicly traded holder of bitcoin.