- MicroStrategy raises $1.25B via stock to buy 13,627 BTC, now holding 687,410 BTC at an average $75,353 per coin.
- MSCI keeps MicroStrategy in its indices, easing investor concerns despite share weighting limits on new stock.
- MSTR shares rebound above $159 after dip, showing confidence in Bitcoin strategy amid market and Fed uncertainties.
MicroStrategy has executed its largest Bitcoin purchase in over five months. The Tysons Corner, Virginia-based firm acquired 13,627 BTC for roughly $1.25 billion, paying an average of $91,519 per coin.
This acquisition brings MicroStrategy’s total Bitcoin holdings to 687,410 BTC, acquired at an average price of $75,353 per Bitcoin. At current market prices near $91,415, the firm’s digital assets are now valued at over $62.8 billion, highlighting its continued confidence in Bitcoin as a corporate treasury strategy.
The company primarily financed this purchase through issuing common stock. MicroStrategy sold 6.8 million shares, raising approximately $1.1 billion. Additionally, the firm issued $119 million in STRC preferred stock, marketed as a high-yield alternative for risk-averse investors.
CEO Michael Saylor described STRC as a tool for “retirees and conservative investors seeking alternatives to traditional savings accounts.” Consequently, this strategy enables MicroStrategy to grow Bitcoin exposure without significantly tapping cash reserves.
Market Reaction and Investor Implications
MicroStrategy shares initially dipped around 5.7% to $157 per share following concerns about Federal Reserve independence. Investors reacted to Chair Jerome Powell’s warning of a potential Trump-led criminal probe. However, shares later rebounded above $159, showing a modest 1% gain.
MicroStrategy’s latest Bitcoin acquisition reinforces the company’s long-term strategy of leveraging digital assets for growth. Moreover, the company’s multiple-to-net asset value (mNAV) stood at 1.03, signaling potential recovery after volatility last year.
MSCI Decision and Index Eligibility
Besides bolstering Bitcoin reserves, MicroStrategy received favorable news from MSCI, which decided not to exclude crypto-heavy firms from its indices. JPMorgan analysts previously warned that exclusion could trigger billions in outflows. However, MSCI deferred changes, maintaining MicroStrategy’s index eligibility through its February review.
Some observers noted that MSCI will not increase share weighting for newly issued stock, but Bitcoin advocate Max Keiser dismissed this concern. “The cap by MSCI to exclude new MSTR shares in its weighting is a nothing-burger,” Keiser said. “Forced buying is still triggered when Bitcoin-heavy MSTR stock price increases.”