MicroStrategy has once again bolstered its Bitcoin (BTC) reserves, acquiring an additional 4,020 BTC after raising $427 million through rapid share sales. The company now holds a staggering 580,250 BTC, reinforcing its position as the largest corporate holder of Bitcoin.
How MicroStrategy Funds Its Bitcoin Purchases
MicroStrategy employs "at-the-market" (ATM) offerings to sell various types of company stock—including:
- MSTR: Common stock
- STRK: Preferred stock (8% annual interest)
- STRF: Preferred stock (10% annual interest)
This strategy allows the company to raise capital without traditional debt, which it then allocates to Bitcoin purchases—a move CEO Michael Saylor believes offers superior long-term value over cash holdings.
Timeline of Preferred Stock Issuances
| Stock | Pricing Date | Nasdaq Ticker | Interest Rate |
|-------|--------------------|---------------|---------------|
| STRK | January 30, 2025 | STRK | 8% |
| STRF | March 20, 2025 | STRF | 10% |
👉 Learn how MicroStrategy’s Bitcoin strategy outperforms traditional investments
Criticism and Risks
MicroStrategy’s aggressive Bitcoin accumulation has drawn scrutiny:
- Debt-Fueled Purchases: The company has borrowed billions to buy Bitcoin, raising concerns about repayment risks if BTC prices drop sharply.
- Lack of Diversification: Unlike most corporations, MicroStrategy holds zero cash reserves, opting for a 100% Bitcoin-backed treasury.
Economist Peter Schiff warns that a Bitcoin crash could lead to catastrophic losses or even bankruptcy. However, Saylor remains steadfast:
"Lenders cannot force us to sell Bitcoin—there are no margin calls. We’re committed long-term, regardless of volatility."
Bitcoin Price Update
As of the latest data, Bitcoin trades at $109,797.03 (Kraken price feed).
FAQ
Why does MicroStrategy keep buying Bitcoin?
MicroStrategy views Bitcoin as a hedge against inflation and a superior store of value compared to cash or bonds.
What happens if Bitcoin’s price crashes?
The company asserts it won’t liquidate holdings due to debt covenants preventing forced sales.
How does MicroStrategy fund its Bitcoin purchases?
Through ATM offerings—selling shares (MSTR, STRK, STRF) directly to investors without taking on debt.
👉 Discover why institutional investors are turning to Bitcoin
Key Takeaways
- MicroStrategy now holds 580,250 BTC—a $63.7B position at current prices.
- ATM offerings enable rapid capital raises for Bitcoin acquisitions.
- Critics highlight risks, but Saylor’s strategy remains unshaken by market fluctuations.
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