MicroStrategy Buys 130 BTC, Creates $1.44B USD Reserve to Cover Dividends
MicroStrategy (MSTR) purchased 130 BTC between November 17–30, spending about $11.7 million. The company’s reported aggregate bitcoin holdings rose to 650,000 BTC. Filings show MicroStrategy established a $1.44 billion USD reserve funded via an at‑the‑market equity offering to cover preferred‑stock dividend payments and service debt, with a target to maintain at least 12 months of dividend coverage and extend toward 24 months. The company disclosed average prices of the recent buys at roughly $89,960 per BTC, while its reported average cost per bitcoin across the whole position (per company disclosure) is materially lower. The announcement coincided with a sharp intraday BTC drawdown (~$86K flash dip) that triggered liquidations and pressured markets; MSTR shares fell about 4.6% pre‑market. Critics — notably investor Peter Schiff — argued that issuing equity to build dollar reserves undermines the bitcoin‑treasury strategy. For traders: the build shows continued institutional accumulation and a corporate focus on managing short‑term fiat liquidity risk; the timing during a flash drawdown highlights sensitivity of MSTR equity and short‑term BTC volatility. Primary keywords: MicroStrategy, MSTR, Bitcoin (BTC), USD reserve, dividend coverage, institutional accumulation.
Neutral
The news is neutral for BTC price direction when isolated from broader macro factors. Positive elements: MicroStrategy’s continued purchases signal ongoing institutional accumulation, which can be interpreted as a long‑term bullish endorsement of bitcoin and supports demand. Negative/neutral elements: the 130 BTC buy is small relative to total BTC supply and MicroStrategy’s large holdings, so its immediate price impact on BTC is limited. The creation of a $1.44B USD reserve — funded by equity issuance — signals the company is prioritizing fiat liquidity and dividend coverage over immediate additional BTC accumulation, which may reduce near‑term buying pressure from this major holder. The announcement coincided with a flash crash and liquidations, underlining short‑term volatility risk; MSTR stock reacted negatively, illustrating contagion between corporate actions and market sentiment. For traders: expect limited direct bullish pressure on BTC from this specific buy, but continued institutional commitment is a structural positive long term. Short term, volatility and equity issuance to shore up fiat reserves could be neutral to mildly bearish if it reduces the firm’s near‑term BTC purchases.