MicroStrategy Incorporated (NASDAQ: MSTR) plunged over 7% in pre-market trading on Tuesday after Bitcoin price sank nearly 9% to $87,285. The decline follows the company’s announcement that it added another 20,356 bitcoins to its already substantial cryptocurrency reserves.
According to a recent SEC filing, MicroStrategy executed the purchase between February 18 and February 23, 2025, spending approximately $1.99 billion in cash. The company paid an average price of $97,514 per bitcoin for this latest haul.
To finance the acquisition, MicroStrategy tapped a convertible notes offering completed on February 21, 2025, raising $2.0 billion with a 35% conversion premium tied to its class A common stock price. The offering also includes an option for initial buyers to purchase an additional $300 million in notes, available through February 27, 2025.
As of February 23, 2025, MicroStrategy’s (NASDAQ: MSTR) total Bitcoin holdings have reached 499,096 bitcoins. The company has acquired these at an average price of $66,357 per bitcoin, including fees and expenses, bringing its total investment to roughly $33.1 billion. This aggressive stockpiling of Bitcoin has turned the company into a lightning rod for investors, with its stock price often mirroring the cryptocurrency’s rollercoaster ride.
In addition to the Bitcoin acquisition, the SEC filing provided an update on the company’s at-the-market equity offering program. From February 18 to February 23, 2025, the company refrained from selling any shares through this avenue, opting instead to use the convertible notes proceeds to fund its Bitcoin grab.
The filing also included key performance indicators (KPIs) for the company’s Bitcoin strategy in 2025. Between January 1 and February 23, it posted a BTC Yield of 6.9%. The BTC Gain hit 30,702 bitcoins, equating to a dollar gain of about $2.941 billion, based on Bitcoin’s market price on the Coinbase (NASDAQ: COIN) exchange as of February 23, 2025.
Moreover, the document detailed the company’s shares outstanding, covering its various classes of common and convertible stock. It spelled out the potential dilution from the new convertible notes, giving investors a clearer view of the company’s evolving financial landscape.
