MicroStrategy Raises $467M, Holds Cash, Skips Bitcoin Buys

MicroStrategy raised $467 million through a stock offering last week and added the proceeds to cash, increasing its USD reserve to about $3 billion. The company did not buy Bitcoin for a third consecutive week.

Company filings show the stock sale raised cash on hand by roughly 18%, giving MicroStrategy more than 20 months of coverage for about $1.76 billion in annual dividend and interest obligations.

The firm has been using equity sales to fund payments tied to its convertible preferred securities rather than to acquire more Bitcoin. The preferred shares pay a dividend of about 12% and trade below their $100 par value. Common shareholders face dilution as proceeds are applied to those obligations.

MicroStrategy’s common shares fell about 4% on Monday to roughly $90.80 and are about 18% below their level at the start of the month. The stock reached a 28-month low of $81.81 in late June.

MicroStrategy holds about 843,775 bitcoins at an average purchase price near $75,476 per coin. With Bitcoin trading around $62,600, the position sits roughly $11 billion below its historical purchase cost.

Since June 22 the company has generated about $215 million by selling some Bitcoin, a figure below the proceeds from the recent stock sale. The company’s last disclosed Bitcoin purchase was on June 22.

Bitcoin exchange-traded products saw net outflows of about $425 million on Monday and trading volumes on some centralized exchanges cooled in June. MicroStrategy recorded no Bitcoin purchases in the most recent weeks and allocated the latest $467 million entirely to cash, leaving its Bitcoin balance unchanged for a third straight week.

Company filings do not disclose plans for future Bitcoin purchases. With a larger cash buffer and the capacity to raise funds through share sales, the timing and size of any future Bitcoin acquisitions remain unclear.