MicroStrategy Buys 850 BTC, Boosts Holdings to 639,835 Bitcoin

MicroStrategy expanded its Bitcoin reserves with another acquisition of 850 BTC worth about $99.7 million. The latest purchase raises the company’s total Bitcoin holdings to 639,835 BTC, which were acquired at an average price of $73,971 per coin.

The move came as Bitcoin trades near $113,000 and MicroStrategy’s stock (MSTR) fell over 2% during pre-market trading.

MicroStrategy Adds 850 BTC, Here’s All

In the most recent press release, MicroStrategy disclosed the purchase of 850 Bitcoin between September 15 and 21 for approximately $99.7 million. The acquisition was completed at an average price of $117,344 per Bitcoin.

According to the company’s SEC filing, the total Bitcoin holdings now stand at 639,835 BTC, acquired for a combined $47.3 billion at an average purchase price of $73,971 per coin.

The funding for this purchase primarily came from the issuance of Class A common stock (MSTR) and perpetual preferred stock. Around 80% of the capital was raised through common stock sales, while the remainder was sourced from perpetual Strife preferred stock (STRF) issuance.

This arrangement enabled the company to continue its long-term Bitcoin accumulation strategy without raising conventional debt liabilities.

Market Reaction and Bitcoin Price Movements

The retraction of the price of BTC and the MicroStrategy shares accompanied this recent purchase. Bitcoin was trading at approximately $113,000, falling more than 2% over the past 24 hours.

Although the price has dropped slightly, analysts observe that BTC was only retesting the breakout zone and may rally to the resistance zones of 123,800 and 130,900. The chart indicates strong support in the volume shelf, which is highlighted, indicating that buyers are absorbing the selling pressure.

If Bitcoin price holds above this key demand area, momentum may drive a move toward the upper Fibonacci targets.

On the other hand, MicroStrategy’s stock reflected similar movement. MSTR traded around $336 in early Monday pre-market hours, down from its previous close of $344. The company’s share price had already touched a five-month low of $323 the previous week and recorded less than 2% gain over the last month.

Despite these short-term declines, MSTR shares remain up nearly 15% year-to-date compared to Bitcoin’s 20.5% growth in the same period.

Funding Programs and Capital Strategy

MicroStrategy continues to fund its Bitcoin purchases through multiple capital-raising initiatives. The company operates a series of perpetual preferred stock programs, including STRK, STRC, STRF, and STRD, which collectively target up to $84 billion under its expanded “42/42” capital plan.

This plan was doubled from the earlier $42 billion target after the initial equity allocation was exhausted.

Every type of preferred stock is created with a specific risk profile for investors. STRD is non-convertible and is paying a non-cumulative dividend of 10% with STRK being convertible and an 8% non-cumulative dividend with monthly payments. STRF pays a cumulative dividend of 10%, and STRC pays a variable rate cumulative dividend with monthly payments.

Corporate Bitcoin Treasury Landscape

MicroStrategy remains the largest corporate holder of Bitcoin, controlling over 3% of the cryptocurrency’s capped 21 million supply. Data from Bitcoin Treasuries shows that 178 public companies now operate similar acquisition strategies.

Notable participants include Marathon Digital Holdings, Tether-backed Twenty One, and Metaplanet, which recently purchased 5,419 BTC worth about $632.5 million.

Bitcoin adoption has increased as corporations continue increasing their crypto reserves. In Bitcoin news earlier today, Metaplanet purchased 5,419 BTC worth $623 million, raising its total holdings to 25,555 BTC and signaling more acquisitions ahead.