MicroStrategy Expands Bitcoin Holdings to 848,000 Amid Financing Shifts

MicroStrategy Inc. (NASDAQ: MSTR) has continued its aggressive Bitcoin accumulation strategy, closing October 5 at $164.43 per share, up 2.76% on the day. The company's latest SEC filing revealed that as of October 4, MicroStrategy held 848,000 Bitcoin at an aggregate cost of approximately $63.97 billion, with an average cost of $75,441 per Bitcoin. Notably, the company added 334 Bitcoin between October 1 and October 4, spending $28.7 million at an average cost of $85,838.80 per Bitcoin.

The company's financing strategy has become as important as its Bitcoin holdings. MicroStrategy used $15.7 million from common stock sales and $13.0 million in cash to fund the recent Bitcoin purchase. Additionally, the company repurchased $176.3 million of its variable-rate perpetual preferred stock (STRC) between September 28 and October 4, highlighting the growing role of preferred stock in its capital structure.

MicroStrategy estimates a $20.91 billion gain from its digital assets for Q3, though this figure has not been audited. The company also reported a digital asset carrying value of $70.82 billion as of September 30. Despite the substantial Bitcoin gains, the software business remains financially secondary, with Q2 revenue of $122.4 million and a net loss of $8.22 billion due to Bitcoin fair-value fluctuations.

The company has built a $5.71 billion liquidity cushion, primarily to support preferred dividends and debt service. MicroStrategy also proposed changing the payment cadence for its preferred stocks to daily dividends, subject to shareholder approval at an October 28 meeting. For common shareholders, the key metric remains Bitcoin per share, which reflects the company's core investment case.