MW MicroStrategy reverts to selling just common stock to buy bitcoin

By Tomi Kilgore

The company, doing business as Strategy, sold nearly 1 million of its shares to the public so it could use the money to buy more bitcoin on the dip

Shares of MicroStrategy Inc. charged higher Monday, after the software company and bitcoin stockpiler said it sold off more of its stock to help fund the purchase of bitcoin, both at what ended up being good market prices.

The Virginia-based business-analytics software company (MSTR), which is doing business as Strategy, disclosed Monday that it spent $285.8 million to buy 3,459 bitcoins (BTCUSD), at an average price of $82,618. The purchases, the first this month, were made between April 7 to April 13.

The buying started after bitcoin sold off sharply on April 7, as the cryptocurrency market couldn't escape the turmoil seen in the stock and government-bond markets.

The company did a relatively good job with its purchases, as the average purchase price was about 2.8% below current levels, at $84,977.

To raise the money to buy the bitcoin, Strategy disclosed the public sale of 959,712 of its common shares, also from April 7 to April 13. With net proceeds of $285.7 million, that implies the company sold the shares at around $297.69.

That compares to the volume-weighted average closing price of the stock during the week of about $267.92.

The stock is now trading well above where the company sold it, as it rallied 4.2% in recent afternoon trading Monday to $312.56.

The sole sales of common stock to buy bitcoin marked a change from the company's recent strategy of selling preferred stock, and debt.

The last time the company bought bitcoin, which was the week from March 24 to March 30, Strategy funded the purchases through the sale of $1.2 billion worth of common stock and $18.52 million worth of preferred stock.

The change may not be such a surprise, as some analysts had commented that recent sales of debt and preferred stock had been "less than stellar."

Strategy now owns 531,644 bitcoins, which it spent $35.92 billion to buy at an average purchase price of $67,556. At current bitcoin prices, that holding would be valued at $45.18 billion.

Strategy's stock has rallied 7.9% this year, while bitcoin has lost 9% and the S&P 500 index SPX has declined 7.7%.

-Tomi Kilgore

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April 14, 2025 15:45 ET (19:45 GMT)

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