MicroStrategy Buys Nearly $1B in Bitcoin in Its Largest Purchase in Months

MicroStrategy has revealed a major new Bitcoin acquisition, spending $963 million to buy 10,624 BTC last week. Most of the funds came from newly issued common stock.

The company now holds roughly 660,600 BTC, worth around $60 billion at current prices. This marks MicroStrategy’s biggest Bitcoin buy in more than 100 days.

Although Bitcoin is trading near $90,000, MicroStrategy’s stock has been volatile. Shares are down 50 percent over the past six months but have risen 7.5 percent in the last five trading days. Analysts at Cantor Fitzgerald said concerns about MicroStrategy changing its buying strategy are exaggerated, yet they still cut their price target due to risks such as potential exclusion from MSCI indices. TD Cowen shared similar concerns but praised MicroStrategy’s creation of a $1.4 billion cash reserve, which strengthens its ability to maintain dividend payments.

Along with this purchase, MicroStrategy issued $44 million in STRD preferred shares, which provide a 10 percent annual non-cumulative dividend.