MicroStrategy Expands Bitcoin Holdings with Additional Purchase
MicroStrategy, the pioneer of Bitcoin reserve strategy, has purchased an additional 430 bitcoins, increasing its total holdings to 629,376 bitcoins. However, the recent trend of MSTR’s stock price has been weak, as it fell 0.74% yesterday after the announcement of the purchase, closing at $363.6, still a long way from the $600 threshold for actively issuing new MSTR shares. It seems that MicroStrategy can only raise funds for Bitcoin purchases through the issuance of preferred shares, which has the advantage of not diluting the Bitcoin quantity held by current shareholders (BPS) while also helping to enhance mNAV.
MicroStrategy Raises Funds for Bitcoin Purchases Through Preferred Shares
This time, the company raised a total of $50.4 million through the issuance of:
- 8% Convertible Preferred Shares STRK, raising $19.3 million
- 10% Preferred Shares STRF, raising $19 million
- 10% Preferred Shares STRD, raising $12.1 million
All of the raised funds were used to buy Bitcoin. MicroStrategy acquired 430 bitcoins at an average cost of $119,666. As of August 17, 2025, the company holds a total of 629,376 bitcoins, with a total cost of $46.15 billion and an average cost of $73,320 per bitcoin.
“mNAV Threshold” Mechanism Determines When to Issue Common Shares for BTC
In its last earnings call, MicroStrategy announced that it would determine whether to continue issuing common shares to exchange for BTC based on the internal assessment metric “mNAV Premium Ratio” to provide greater flexibility in executing capital market strategies:
- Above 4 times: Actively issue shares to buy Bitcoin
- Between 2.5 and 4 times: Decide whether to raise funds for Bitcoin based on market conditions
- Between 1 and 2.5 times: New shares will not be issued unless to pay existing debt interest or to distribute preferred share dividends
- Below 1 time: Consider issuing bonds to repurchase MSTR’s own shares
This time, Saylor has kindly provided the relative stock price, allowing investors to intuitively understand his approach.
MicroStrategy can only issue preferred shares to raise funds for Bitcoin purchases, slowly increasing mNAV. The MSTR stock price has been weak recently, falling 0.74% yesterday after the announcement of the purchase, closing at $363.6, still far from the $600 mark for actively issuing new MSTR shares. Its current mNAV stands at 1.61 times.
It seems that MicroStrategy can only raise funds for Bitcoin purchases through the issuance of preferred shares, which has the advantage of not diluting the Bitcoin quantity held by current shareholders (BPS), while also helping to enhance mNAV.
(MSTR stock price stagnates! mNAV lingers at a low level, what else does MicroStrategy have up its sleeve?)
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile, potentially resulting in the loss of your entire principal. Please assess the risks carefully.