The company, MicroStrategy, purchased 130 Bitcoin with a total value of 10.7 million dollars. They bought these coins between March 10 to 16 at a price of 82,981 dollars each, funded the purchases by selling 123,000 shares of their preferred stock. and did not sell any Class A common stock during this period.
Shareholder Effects and Funding Strategy
Regarding the preferred stock, which acts as bonds, MicroStrategy sold these to finance the purchase of bitcoin. The selling of preferred stock avoided diluting the existing shareholders. As of March 16, MicroStrategy has a total of 499,226 Bitcoin. This amount is estimated to be approximately 41.6 billion dollars. The total spending was about 33.1 billion dollars, which cost them an average of 66,360 dollars per Bitcoin. This means MicroStrategy now owns more than 2% of Bitcoin’s total supply.
Reactions from the Market and Economic Situations
The acquisition announcement was made by Michael Saylor on the X platform, boasting a 6.9% interest yield yearly for 2025. Pre Market MicroStrategy shares saw a slight decrease in price. Alongside this, a European Central Bank official flagged that the approach the US takes toward digital currency could pull the country into another financial crisis, claiming Europe has a stronger grasp on crypto than the US does.
Still, Donald Trump has stated that he favors the development of the crypto industry, including the establishment of a strategic reserve for Bitcoin. That European leader also encouraged more foreign investment in euros.
Bitcoin Bet Continues: MicroStrategy’s Long Game
The most recent acquisition of Bitcoin by MicroStrategy, although small, demonstrates MicroStrategy’s ongoing commitment to its Bitcoin strategy.
The preferred stock funding method taken here shows care pertaining to shareholder value. The differing perspectives from European and American lawmakers concerning the regulation of crypto assets highlights the existing problems with regards to the debate on digital assets. With the evolution of the market, MicroStrategy’s significant holdings of Bitcoin will continue to be a target for the investors, while the company’s performance is dependent on the price of bitcoin, the regulatory environment, and other microeconomic factors.
