MicroStrategy Nears BlackRock in Bitcoin Holdings

MicroStrategy said it spent $1 billion last week to acquire roughly 14,000 Bitcoin, using proceeds from its STRC variable-rate preferred shares. The purchase raised the company’s total holdings to nearly 781,000 BTC, a roughly 1.8% increase from the prior week.

The Tysons Corner, Virginia-based firm reported the transaction as its largest Bitcoin purchase in nearly a month. With Bitcoin trading near $70,900, the company’s holdings were valued at about $55.3 billion.

MicroStrategy funded the purchase entirely through STRC, a preferred share that currently pays 11.5% in monthly dividends. The company issued STRC for a second consecutive week as part of a recent pattern of using the product instead of issuing common stock.

Since STRC’s debut in July, MicroStrategy has raised approximately $3.55 billion through the preferred shares, exceeding the $2.5 billion raised in a prior public offering of the product. After the latest issuance, the firm’s annual dividend obligations tied to STRC total about $1.2 billion. In March, the company raised nearly $1.2 billion through STRC, and the preferred traded near its $100 par value for five straight trading days last week.

The use of STRC has prompted questions about dividend coverage and sustainability. MicroStrategy said it set aside $2.25 billion in cash reserves last year to help meet obligations. Executive Chairman Michael Saylor wrote on X that the company’s ARR, the ratio of annual dividends and interest expense to the market value of its Bitcoin holdings, stands at about 2.05% and that if Bitcoin grows faster than that over time the firm could cover dividends without issuing new common shares. He directed readers to a real-time tracker on the company’s website.

MicroStrategy’s purchase narrowed the gap with the largest spot Bitcoin ETF, which holds an estimated 790,000 BTC. Assuming ETF inflows remain flat, MicroStrategy would need to add roughly 9,000 BTC to surpass that vehicle.

A prediction market showed traders lowered the probability that MicroStrategy would sell Bitcoin in 2026 to 12%, down from 18% a month earlier.

Analysts reacted with mixed moves: TD Cowen reduced its price target for MicroStrategy to $350 from $440 while maintaining a Buy rating, citing a lower expected price for Bitcoin this year. MicroStrategy’s common shares have fallen about 57% over the past six months and traded down roughly 2.5% to $125.50 after Monday’s open.