MicroStrategy (MSTR) has acquired an additional 1,142 Bitcoin for approximately $90 million, defying a market correction that has pushed the company’s unrealized losses beyond the $5 billion mark. The purchase, executed between February 2 and February 8, brings the firm’s total holdings to 714,644 BTC.
Buying the Dip (and the Drop)
According to a Form 8-K filing released Monday, MicroStrategy paid an average of $78,815 per coin, significantly higher than Bitcoin’s current trading price of roughly $69,000. This discrepancy underscores the volatility of the accumulation strategy; the company bought into falling prices, yet the market continued to slide.
The mathematics of the trade are stark:
- Total Holdings: 714,644 BTC
- Aggregate Cost: $54.35 billion
- Average Cost Basis: $76,056 per BTC
- Current Market Value: ~$49.3 billion (at ~$69k/BTC)
The resulting paper loss of roughly $5.05 billion represents one of the deepest drawdowns in the company’s history, yet signals zero deviation from Executive Chairman Michael Saylor’s mandate to acquire Bitcoin using capital markets arbitrage.
The ATM Dilution Engine
The liquidity for this $90 million acquisition came directly from shareholder dilution. MicroStrategy sold 616,715 shares of Class A common stock through its At-The-Market (ATM) offering, raising $89.5 million in net proceeds. Essentially, the company continues to swap fiat equity for digital scarcity, regardless of short-term PnL.
“Orange Dots Matter.”
, Michael Saylor via X
While the “orange dots” (new purchases) continue to appear, the cost basis is creeping up. The firm’s average purchase price has risen to $76,056, dangerously close to the current spot price, compressing the safety margin that shielded the company during the 2022 bear market.
Market Reaction
Bitcoin struggled to hold the $69,000 support level early Monday, down 7% on the week. MSTR stock faces pressure as the premium to its Net Asset Value (NAV) narrows, forcing investors to weigh the benefits of a leveraged Bitcoin proxy against the reality of financing a $5 billion hole.
