MicroStrategy (Nasdaq: MSTR), the prominent Bitcoin treasury company, has once again significantly expanded its Bitcoin holdings, signaling a renewed commitment to its BTC-centric strategy.
According to its latest filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy invested approximately $369.7 million to acquire 4,603 Bitcoins between August 24 and August 30. This substantial purchase was executed at an average price of $80,318 per Bitcoin, a figure that includes all transaction fees and associated expenses.
This latest acquisition brings MicroStrategy’s total Bitcoin reserves to an impressive 845,050 BTC as of August 30. The company’s cumulative investment in Bitcoin now stands at approximately $63.73 billion, with an overall average acquisition cost of $75,412 per Bitcoin. Notably, the most recent batch of BTC was acquired at a premium, with its purchase price sitting roughly 6.5% above the company’s current average cost basis.
The transaction marks MicroStrategy’s first re-entry into Bitcoin purchasing since late June and represents its largest single acquisition since May of this year. This move follows a period between June 30 and August 10, during which MicroStrategy had divested a total of 6,916 Bitcoins. These sales occurred at prices ranging from $59,256 to $64,262 per BTC, temporarily reducing its holdings to 840,447 Bitcoins. With the addition of 4,603 BTC, the company has largely offset its earlier reduction, though its current holdings remain 2,313 BTC shy of the 847,363 held on June 22.
Funding Bitcoin Acquisition Through Equity Offering
MicroStrategy disclosed that the capital for this latest Bitcoin acquisition was raised through an At-The-Market (ATM) equity offering program. During the same period, the company successfully sold 4,531,421 shares of its MSTR common stock, generating net proceeds of approximately $602.8 million. Of this sum, $369.7 million was directly allocated to the purchase of Bitcoin.
The remaining proceeds were strategically deployed across various corporate initiatives: approximately $151.8 million was utilized to repurchase 1,557,177 shares of STRC variable rate perpetual preferred stock, $50.7 million covered STRC dividend payments, and an additional $30 million was channeled into the company’s USD cash liquidity account. This dual strategy of issuing common stock to raise capital while simultaneously repurchasing preferred stock highlights MicroStrategy’s ongoing efforts to optimize its overall capital structure.
As of August 30, MicroStrategy maintained robust financial liquidity, reporting USD reserves of $5.1 billion and a general USD cash balance of $1.61 billion. These substantial funds are earmarked for critical corporate expenditures, including preferred stock dividends, debt interest servicing, future Bitcoin acquisitions, and other strategic capital management objectives.
Market Scrutiny: “Selling Low, Buying High” Narrative Resurfaces
MicroStrategy, famously known for its “Bitcoin-only” and “buy the dip” philosophy, had previously made an unusual move by selling a portion of its Bitcoin holdings during a period of price correction and pressure on its securities. An 8-K filing with the U.S. SEC revealed that the company’s most recent sale occurred between August 3 and August 9, where it divested 1,690 Bitcoins at an average price of $64,262 per BTC, generating approximately $108.6 million.
Related Content: “Buying High, Selling Low” Sparks Market Questions! MicroStrategy Sells 3,588 Bitcoins, Cashing Out $216 Million
The company’s recent return to significant Bitcoin acquisitions is interpreted as a clear pivot back to expanding its Bitcoin exposure. However, this strategy has once again drawn criticism and sparked a “selling low, buying high” narrative within the market. This round of transactions underscores MicroStrategy’s continued reliance on common stock issuance to fund its Bitcoin strategy. Consequently, investors are advised to monitor not only Bitcoin price movements but also the potential risk of equity dilution stemming from the ongoing issuance of new shares.
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