MicroStrategy resumed Bitcoin purchases on Monday, acquiring 4,603 BTC for $369.7 million at an average price of $80,318 per coin. This marks the company's first major Bitcoin buy since June, following an unusual summer period during which it sold Bitcoin for the first time in its corporate history.
Summer Selling Strategy
Between May and August, MicroStrategy sold 6,948 BTC for approximately $432.5 million, averaging $62,250 per coin. The sales were tied to funding conditions for the company's Bitcoin acquisitions. MicroStrategy finances its Bitcoin purchases by issuing stock and preferred shares. When its stock ticker (MSTR) fell below $100 par value in June, traditional equity funding became prohibitively expensive. In response, the company activated a Digital Credit Capital Framework authorizing up to $1.25 billion in Bitcoin sales to cover preferred dividends and repurchase shares at discounted prices.
Return to Equity Funding
With MSTR stock recovering, equity once again became the cheaper funding option. Last week, MicroStrategy sold 4,531,421 shares for $602.8 million in net proceeds. Of that amount, $369.7 million was directed to Bitcoin purchases, $151.8 million to share buybacks, $50.7 million to preferred dividends, and $30 million to cash reserves.
Despite the higher purchase price compared to its summer sales, the company maintained net gains in both Bitcoin holdings and cash positions. MSTR stock rose 5% during the week of the purchase.
Following MicroStrategy's move, other corporate treasurers entered the market on the same day. Strive purchased 1,800 BTC for approximately $143 million, and Tom Lee's Bitmine made its largest Ethereum purchase since June. The activity marked a return for several treasury companies that had largely abstained or sold during the summer months.
