MicroStrategy Buys 4,225 Bitcoins for $472.5 Million in July 2025

MicroStrategy, a leading business intelligence firm, has recently made headlines with its substantial increase in Bitcoin holdings. Between July 7 and July 13, 2025, the company acquired 4,225 Bitcoins at an average price of $111,827 per coin, totaling $472.5 million. This purchase brings MicroStrategy's total Bitcoin holdings to 601,550 coins, with an overall investment of $42.87 billion. The average purchase price per coin across all holdings is $71,268.

The funds for this acquisition were raised through the company's at-the-market (ATM) equity sales programs. During the same period, MicroStrategy generated approximately $472 million in net proceeds from the sale of 797,008 common shares and various preferred shares. The preferred shares issued include 573,976 STRK shares, 444,005 STRF shares, and 158,278 STRD shares, with net proceeds of $71.1 million, $55.3 million, and $15.0 million respectively. This brings the total net proceeds from these sales to approximately $472 million.

MicroStrategy's strategy of financing large Bitcoin accumulations through continuous equity issuance is a key aspect of its business model. This approach allows the company to quickly tap into equity markets and convert the proceeds into Bitcoin, reinforcing its position as a leveraged Bitcoin proxy. However, this strategy also comes with significant risks. The issuance of preferred stock with high fixed dividends of 8-10% imposes sizeable perpetual dividend obligations. Additionally, the dilution of common shares from the issuance of new shares may pressure per-share metrics over time. The high average purchase price of the latest Bitcoin tranche, exceeding $111,000, raises the break-even level for incremental buys compared to the historical average purchase price of $71,268.

The company retains over $44 billion in remaining ATM capacity, providing substantial future funding flexibility. This includes $17.8 billion for common shares and approximately $26.5 billion across preferred series. This significant issuance capacity allows MicroStrategy to continue its Bitcoin accumulation strategy or retire debt as needed.

MicroStrategy's commitment to Bitcoin is evident in its continuous purchases and the significant portion of its balance sheet allocated to the cryptocurrency. The company's online dashboard serves as a Regulation FD-compliant channel for real-time updates on security prices, Bitcoin purchases, and key metrics. This transparency allows investors to stay informed about the company's financial health and strategic moves.

In summary, MicroStrategy's recent Bitcoin acquisition and equity sales highlight its aggressive strategy to accumulate the cryptocurrency. While this approach may appeal to crypto-oriented investors and bolster the company's nominal asset value, it also exposes MicroStrategy to significant risks, including high dividend obligations, share dilution, and increased exposure to Bitcoin price volatility and regulatory risks. The company's substantial remaining ATM capacity provides flexibility for future funding needs, but the high average purchase price of the latest Bitcoin tranche raises concerns about the potential downside risk.