MicroStrategy Buys ~$980M in Bitcoin — 10,645 BTC Funded Mainly by Stock Sales
MicroStrategy (MSTR) executed another large bitcoin purchase last week, acquiring 10,645 BTC for about $980.3 million at an average price near $92,098 per coin. The acquisition raises the company’s disclosed holdings to 671,268 BTC with a cumulative cost of roughly $50.33 billion and an average cost basis near $74,972 per BTC. According to the company filing, the buy was funded primarily through $888.2 million in common stock sales, with the remainder from sales of STRD preferred shares. This marks the second consecutive week in which MicroStrategy deployed roughly $1 billion to “buy the dip,” continuing Executive Chairman Michael Saylor’s strategy of treating bitcoin as a long-term corporate treasury asset rather than a short-term trade. The purchase occurred amid market uncertainty and a recent Bitcoin pullback (BTC trading around $89,600 at reporting), and coincided with modest inflows into U.S. spot Bitcoin ETFs. The deal underscores persistent institutional accumulation but also raises trader considerations about shareholder dilution, MSTR equity pressure, and MicroStrategy’s ongoing use of stock-based financing.
Bullish
Large, repeated purchases of BTC by a high-profile corporate treasurer like MicroStrategy are typically price-supportive for Bitcoin. The $980M acquisition increases net demand and signals continued institutional accumulation, which can boost market sentiment and reduce downside risk over time. Short-term effects may be muted or mixed: purchases funded by equity issuance can pressure MSTR shares (possibly reducing a self-fulfilling accumulation effect via future stock sales) and the market was in a pullback around $89.6k, so immediate price reaction could be limited. Over the medium to long term, sustained billion-dollar buys contribute to tightening available supply and reinforce bullish narratives among traders who view corporate treasury accumulation as structural demand. Risk factors that temper the bullishness include potential selling pressure if MicroStrategy needs to fund future purchases via equity at depressed share prices and broader macro events that affect risk appetite.