Michael Saylor's MicroStrategy Buys More Bitcoin Despite Holdings Below Cost Basis
Quick Look
- MicroStrategy acquired 1,587 Bitcoin for $100 million, funded by selling MSTR stock.
- The purchase occurred while BTC traded below the company's average cost basis of $75,656.
- MicroStrategy now holds 846,842 BTC.
AI-generated summary
Why It Matters
MicroStrategy, a major Bitcoin holder, continues to acquire cryptocurrency despite current market prices being below its average cost basis. The company funds these acquisitions through the sale of its Class A common stock.
Michael Saylor’s MicroStrategy, the world’s largest public Bitcoin holder, added to its cryptocurrency reserves last week as BTC continued to trade below the company’s average cost basis of about $75,700.
MicroStrategy acquired 1,587 Bitcoin (BTC) for $100 million between June 8 and Sunday, according to Monday's 8-K filing with the US Securities and Exchange Commission.
The purchase was made at an average price of $63,024 per Bitcoin, bringing the company’s overall average cost basis slightly lower to $75,656.
With the latest buy, MicroStrategy now holds 846,842 BTC, accumulated at a total cost of $64.07 billion. At the current price of about $66,216 per bitcoin, those holdings are worth roughly $56.1 billion, according to CoinGecko data.
MSTR sales behind the purchase
Similar to the previous 1,550 BTC acquisition announced last Monday, MicroStrategy funded the latest acquisition through sales of its Class A common stock (MSTR).
In the filing, the company said it raised about $209 million by selling 1.73 million MSTR shares during the period. Preferred share programs, including STRC, STRF, STRK and STRD, showed no activity during the week.
According to STRC.live, a tracker of MicroStrategy’s preferred stock programs, STRC traded below its $100 par value for a fourth consecutive week as of June 12. The stock remained in the mid-$96 range, marking its longest stretch below par since launch.
STRC closed at $94.80 on Friday, down around 1%, according to TradingView data.
MicroStrategy executive chairman Saylor hinted at the latest purchase in a post on X on Sunday, writing, “Still adding dots,” a phrase investors have come to associate with the company’s upcoming Bitcoin acquisitions.
The latest buy comes about two weeks after MicroStrategy disclosed the sale of 32 BTC on June 1, its first reported Bitcoin sale in years. While the transaction represented only a tiny fraction of the company’s holdings, the sale ignited debate in the community, with some industry observers questioning whether the company was moving away from its long-standing buy-and-hold approach.
Saylor recently defended the sale, telling Cointelegraph that Bitcoin treasury companies must retain the ability to sell holdings to support dividend-paying securities.
What to Watch
AI outlook — possibilities, not facts
MicroStrategy may continue to sell MSTR shares to fund Bitcoin purchases.
Likely · Medium term
Open Questions
- Will MSTR stock recover its par value?
- What is the long-term strategy for Bitcoin holdings?
