13-Week Buying Streak Ends After 90,831 BTC Acquired
MicroStrategy (MSTR) broke its consistent rhythm of Bitcoin accumulation last week, ending a 13-week streak of consecutive weekly purchases. The pause was signaled by the absence of Executive Chairman Michael Saylor's customary Sunday social media post, which typically precedes a formal purchase announcement on Monday morning. Instead, Saylor highlighted the company's perpetual preferred equity offering.
This halt concludes an aggressive buying campaign that began in late December, during which the firm added 90,831 BTC to its balance sheet. According to company data, MicroStrategy currently holds a total of 762,099 bitcoin, making it the largest publicly traded holder of the digital asset.
Holdings Slip Underwater as High-Yield Funding Falters
The break in buying activity occurs as MicroStrategy’s significant Bitcoin investment has slipped into an unrealized loss. With Bitcoin’s market price falling below $67,000, the company's average acquisition price of $75,694 per token is now above the current spot price. This financial pressure is compounded by reported difficulties with its primary funding mechanism.
To finance its purchases, the company has heavily utilized its “Stretch” (STRC) perpetual preferred shares, which offer investors a high 11.5% annual dividend. However, recent reports suggest the firm struggled to raise new capital through this instrument last week. This indicates potential market resistance to funding the high-cost arbitrage strategy, which relies on Bitcoin’s appreciation outperforming the steep dividend yield.
Strategy's NAV Premium Narrows, Threatening 1M BTC Goal
The entire accumulation strategy hinges on MicroStrategy's stock (MSTR) trading at a significant premium to the net asset value (NAV) of its Bitcoin holdings. This premium allows the company to issue new equity at an inflated value to buy Bitcoin at market price. With MSTR shares down approximately 76% from their November 2024 peak, this premium is contracting, reducing the company's ability to raise capital efficiently.
The current funding challenges and stock underperformance cast doubt on the feasibility of Saylor’s ambitious goal to accumulate 1 million BTC. Achieving this target would require acquiring roughly 239,000 more coins at an estimated cost of $22.2 billion. Adding to market scrutiny, while the corporation has been buying aggressively, filings show Saylor has been systematically selling his personal MSTR shares, creating a divergence between corporate strategy and executive action.
