MicroStrategy bought 2,110 BTC using $206M STRC raise
MicroStrategy is estimated to have bought about 2,110 BTC on May 13 using proceeds from a $206 million STRC preferred stock sale.
MicroStrategy is estimated to have purchased about 2,110 bitcoin on May 13 using proceeds from a $206 million sale of STRC perpetual preferred shares.
The company disclosed on May 11 that it raised $206 million by issuing 2.12 million shares of STRC, its 11.5% annual-yield perpetual preferred stock, at prices near the $100 par value. The preferred stock returned to its $100 par threshold, which reopened the firm’s at-the-money issuance program and provided funding for further bitcoin purchases without issuing additional common shares at the same dilution rate. STRC recorded nearly $445 million in daily trading volume on the day of the raise.
MicroStrategy had reported buying 535 bitcoin the prior week for about $43 million at an average price of $80,340 per coin, bringing reported holdings to 818,869 BTC before the estimated May 13 purchase. If the 2,110 BTC purchase is confirmed, holdings would rise to about 820,979 bitcoin.
The company’s disclosed average acquisition cost across its position is roughly $75,540 per coin. MicroStrategy now controls about 4% of bitcoin’s fixed supply of 21 million coins.
MicroStrategy opened the year with a $116 million bitcoin purchase in January, then added 13,927 BTC for roughly $1 billion in April and later bought 34,164 BTC for about $2.54 billion in the same month. The firm reported a year-to-date bitcoin yield of 9.6% late last month.
The company has used STRC and other structured financings, including preferred share offerings, convertible notes and debt, to fund bitcoin purchases while limiting dilution to common shareholders. Company executives describe STRC as a funding vehicle for bitcoin acquisitions.
CEO Michael Saylor briefly suggested bitcoin might be sold to fund dividends and later clarified the remarks were intended to confuse short sellers. Company executives reiterated that MicroStrategy intends to remain a net buyer and targets buying roughly 10 to 20 bitcoin for every coin sold.
MicroStrategy’s continued issuance of STRC and regular purchases keep the company among the largest institutional holders of bitcoin.
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