Finance

MicroStrategy’s Bitcoin Bonanza: How Preferred Equity Fuels a $49.9M BTC Buy, Avoiding Shareholder Dilution

MicroStrategy bought 487 Bitcoin for $49.9M, funded via preferred equity, now holding 641,692 BTC.

November 10, 2025, 3:56 PM

Two large, dark Bitcoin coins in a digital environment with blue trading bars and a faint orange light.

Two Bitcoin coins represent a modern way of exchange and financial investment trade in the global economy. By Phongphan / Shutterstock.com.

Executive Summary

MicroStrategy acquired 487 Bitcoin for approximately $49.9 million between November 3 and November 9, 2025, at an average price of $102,557 per bitcoin.

The acquisition was funded through sales of preferred equity, specifically four preferred stock offerings totaling $50 million, to avoid diluting its Class A common stock shareholders.

As of November 9, MicroStrategy’s total Bitcoin holdings reached 641,692 BTC, acquired at an aggregate cost of $47.54 billion, reflecting an average price of $74,079 per bitcoin.

The Story So Far

MicroStrategy is known for its aggressive strategy of accumulating Bitcoin, and it is funding recent acquisitions by selling preferred equity rather than common stock to avoid diluting its shareholders, all while continuously expanding its substantial Bitcoin reserves.

Why This Matters

MicroStrategy’s latest Bitcoin acquisition, funded through preferred equity rather than common stock, signals a strategic shift to expand its significant BTC reserves without diluting existing common shareholders. This move reinforces the company’s unwavering commitment to its aggressive Bitcoin accumulation strategy, further solidifying its role as a major corporate holder and potentially influencing how other public companies approach digital asset integration.

Who Thinks What?

MicroStrategy believes that funding its latest Bitcoin acquisition through preferred equity sales is a strategic move that allows it to expand its substantial Bitcoin reserves while avoiding dilution for its common stock shareholders.

Common stock shareholders benefit from this funding approach as it ensures their shares are not diluted by the issuance of new Class A common stock.

The market, as reflected by MSTR’s stock performance, reacted with a slight decline of 1% following the announcement of the acquisition and its funding mechanism.

MicroStrategy (MSTR) acquired 487 Bitcoin for approximately $49.9 million between November 3 and November 9, 2025, opting to fund the purchase through sales of its preferred equity rather than issuing new Class A common stock. This strategic move allows the company to expand its substantial Bitcoin reserves while avoiding dilution for its common stock shareholders.

Funding the Bitcoin Acquisition

The enterprise software company, known for its aggressive Bitcoin acquisition strategy, disclosed in an 8K filing that it sold $50 million across four preferred stock offerings during the specified period. This approach marked a departure from previous funding methods that sometimes involved the sale of MSTR Class A common stock.

Specifically, the sales included 165,614 shares of STRF, generating $18.3 million in net proceeds from a $16.6 million notional value. Additionally, 262,311 shares of STRC yielded $26.2 million in net proceeds from a $26.2 million notional value. Sales of 50,881 shares of STRK brought in $4.5 million from a $5.1 million notional value, and 12,800 shares of STRD secured $1.0 million from a $1.3 million notional value.

Bitcoin Acquisition Details

The 487 Bitcoin were acquired at an average price of $102,557 per bitcoin, a figure inclusive of all associated fees and expenses. By utilizing preferred equity, MicroStrategy maintained its commitment to Bitcoin accumulation without impacting the outstanding shares of its primary stock.

MicroStrategy’s Total Holdings

As of November 9, MicroStrategy’s total Bitcoin holdings reached 641,692 BTC. The aggregate purchase price for these holdings now stands at $47.54 billion, reflecting an average cost of $74,079 per bitcoin, inclusive of fees and expenses.

Future Financing Capacity

The company retains substantial selling capacity across its various stock offerings for future capital raises. This includes $1.64 billion for STRF, $4.17 billion for STRC, $20.34 billion for STRK, $4.13 billion for STRD, and $15.85 billion for MSTR Class A common stock, providing ample flexibility for continued strategic maneuvers.

Market Response

Following the announcement of the acquisition and its funding mechanism, shares of MSTR experienced a slight decline. As of the time of publication, the stock was down 1%.