MSTR Buys $50M More Bitcoin Amid Crypto Market Rebound

MSTR purchased 487 BTC at $102,557 each, lifting total holdings to 641,692 BTC worth over $68B.

Bitcoin hitting $106K and U.S. shutdown optimism boosted MSTR stock 3.2% in premarket trading.

MicroStrategy funded BTC purchase through preferred stock sales, retaining $15.8B in Class A stock for future buys.

MicroStrategy (MSTR), the largest corporate Bitcoin holder, accelerated its BTC accumulation last week, acquiring 487 coins for roughly $49.9 million. This purchase, conducted between November 3 and 9 at an average price of $102,557 per Bitcoin, brings the company’s total holdings to 641,692 BTC

The overall value of its Bitcoin portfolio now exceeds $68 billion, with an average acquisition price of $74,079 per coin. Michael Saylor, Strategy’s executive chairman, confirmed the move via X, posting a portfolio tracker captioned “₿est Continue,” signaling confidence despite recent market volatility.

Besides the rising Bitcoin price, which reached as high as $106,000 amid optimism around the potential end of the U.S. government shutdown, the company’s stock also experienced a modest rebound. MSTR shares rose 3.2% in premarket trading following the BTC purchase, though they remain down over 19% year-to-date. The stock’s performance closely correlates with Bitcoin’s price trends, which saw a significant correction below $100,000 earlier this year.

Funding Strategy Through Stock Sales

To fund the latest Bitcoin acquisition, MicroStrategy sold shares of its preferred stock, including STRF, STRC, STRK, and STRD, raising a combined total of $50 million. Specifically, the STRC “Stretch” series contributed $26.2 million via the company’s at-the-market program, marking its first utilization of this funding method

Additionally, STRC’s annualized dividend rate recently increased to 10.5%, paid monthly, enhancing investor appeal. Strategy still has over $15.8 billion in Class A common stock available for future issuance, leaving ample room for additional Bitcoin purchases.

However, the company’s capital-raising efforts face challenges due to declining MSTR stock prices. Investors previously capitalized on a premium tied to the value of BTC held by the company, but this advantage diminished, leading to increased short-selling

A Wall Street Journal article highlighted the months-long decline in digital asset treasury company prices, compounding market pressure. Consequently, MicroStrategy continues cautiously with smaller, incremental Bitcoin acquisitions while monitoring market dynamics.

Market Implications and Institutional Demand

In light of macroeconomic and regulatory changes, institutional interest in digital assets has increased. A procedural vote to end the government shutdown was recently approved by the U.S. Senate, and final approval is anticipated soon.

Analyst Nate Geraci noted that the shutdown’s conclusion could “open the floodgates” for spot crypto ETFs, including the potential first spot XRP ETF under the Securities Act of 1933. Hence, positive market sentiment may support Bitcoin and MSTR stock, driving renewed investor engagement.

Moreover, MicroStrategy’s strategic approach emphasizes disciplined accumulation. While recent purchases occurred at higher prices than the company’s long-term average, the strategy reflects confidence in Bitcoin’s medium- to long-term growth

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