MicroStrategy has executed its fourth-largest Bitcoin purchase of the year, acquiring 2,500 BTC for $168 million. The enterprise software company, now holding roughly 717,100 Bitcoin worth about $48 billion, funded the buy primarily through stock sales, including variable-rate preferred shares. This move comes as the company faces intense investor scrutiny over its substantial debt and its financial strategy amid Bitcoin’s price decline.
MicroStrategy reported its fourth-largest Bitcoin purchase of the year. The firm bought 2,500 BTC last week for $168 million, lifting its total holdings to around 717,100 Bitcoin, worth approximately $48 billion as Bitcoin traded near $67,000 according to a press release.
The acquisition was funded by issuing $90.5 million in common stock and selling $78.5 million of its variable-rate preferred shares. The firm’s shares fell 2.6% to $130 on Tuesday according to Yahoo Finance.
Executive Chairman Michael Saylor has portrayed the preferred stock product as an alternative to high-yield savings accounts. The company established cash reserves last year to address concerns about meeting associated costs.
Investors have fixated on the company’s ability to weather a sustained downturn as its stock price has tumbled 64% over six months. Saylor stated on X the firm aims to “equitize” $8.2 billion in convertible debt over the next three to six years.
He defended the strategy on CNBC’s “Squawk Box,” arguing the firm would not be forced to sell Bitcoin even if the asset fell 90%. “We’ll refinance the debt. We’ll just roll it forward,” Saylor said.
Co-anchor Becky Quick questioned, “Refinance where, Michael?” This exchange has since gone viral on social media. The firm’s Bitcoin holdings are currently down around 12% on paper, representing a loss of roughly $3.6 billion.
On the prediction market Myriad, traders estimated an 18% chance that MicroStrategy would sell Bitcoin this year. Other corporate Bitcoin holders are also feeling pressure, with Japan’s Metaplanet reporting its holdings took a $664 million hit in the fourth quarter.
MicroStrategy’s purchases have become more pronounced as other firms pull back. In January, the company accounted for 93% of Bitcoin added among public firms alone.
