MicroStrategy buys 1,550 BTC for $101M, rebuilds $1B cash
MicroStrategy bought 1,550 Bitcoin for $101 million, funded by $181 million raised from Class A stock sales, and boosted cash reserves to about $1 billion, the company disclosed.
MicroStrategy purchased 1,550 Bitcoin for $101 million at an average price near $65,300 per coin, according to an SEC filing. The company raised $181 million through an at-the-money Class A share issuance between June 1 and June 7, allocating $101 million to Bitcoin and the remainder to cash.
The Tysons Corner, Virginia-based business intelligence company now holds 845,256 Bitcoin. At recent Bitcoin prices near $63,000, that stake is valued at roughly $53.3 billion.
The June purchase followed an earlier, small sale of 32 Bitcoin that coincided with MicroStrategy’s worst weekly stock performance since November 2022. The company reduced cash reserves by about 61% the prior month to repurchase outstanding debt at a discount, which left fewer liquid dollars available for obligations tied to its preferred stock.
JPMorgan wrote that “a rebuilding of the company’s dollar reserves might be needed to restore confidence and reduce investor concerns that the company would sell more Bitcoin to cover dividend payments.”
Investors reacted to the filing with gains in related securities. Shares of MicroStrategy’s common stock rose, at one point reaching about $127.20, and the company’s preferred securities tied to dividend payments also advanced. Shareholders approved changing the cadence of STRC dividend payments to semi-monthly dates on the 15th and the last day of the month.
MicroStrategy has historically funded Bitcoin purchases with equity offerings and convertible instruments, including proceeds from sales of Class A common stock and at-the-money issuance programs. The recent filing confirmed the use of that issuance mechanism for the latest acquisition.
The SEC filing covered only the June-week transactions and the updated cash position. It did not provide guidance on any future Bitcoin purchases.
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