MicroStrategy disclosed in an 8-K filing Friday that it acquired an additional 14,200 bitcoin between April 14 and April 24 at an average price of $95,775 per coin, deploying $1.36 billion in cash funded primarily by the company's at-the-market equity program and the conversion of its 0.625% convertible notes due 2030. The purchase brings total holdings to 715,840 bitcoin.
At Friday's spot price of $96,200, the treasury is valued at approximately $68.9 billion, against an aggregate cost basis of $42.4 billion, representing an unrealized gain of $26.5 billion. MicroStrategy shares climbed 4.8% to $458.20 on the news, though the stock continues to trade at a premium of roughly 1.7x to the per-share value of its bitcoin holdings.
The 21/21 Plan Approaches Halfway Mark
The latest purchase puts MicroStrategy roughly 47% of the way toward Saylor's 21/21 Plan announced last year, which targets raising $21 billion in equity and $21 billion in fixed income over three years to deploy entirely into bitcoin. Year to date, the company has issued $8.4 billion in equity and $6.1 billion in convertibles, exhausting most of its near-term shelf capacity.
Saylor told CNBC in an interview Friday that the company would continue to use volatility-induced premia in the convertible market opportunistically, and that he viewed the current 5% to 6% all-in cost of capital as well below his estimated 30% bitcoin compound annual growth rate over the next decade.
Corporate Bitcoin Treasury Movement Expands
MicroStrategy is no longer alone. Semler Scientific, MARA Holdings, Riot Platforms and a growing list of small-cap companies have adopted bitcoin treasury strategies. More notably, GameStop began acquiring bitcoin in March, while Tesla has reportedly explored adding to its existing holding ahead of Q2 earnings. Total corporate bitcoin holdings outside of ETFs have crossed 1.4 million coins, representing roughly 6.7% of all bitcoin in circulation.
The dynamic has structural implications for the bitcoin market. Spot ETF holdings now exceed 1.6 million bitcoin, and combined with corporate treasuries, this represents more than 14% of all coins ever mined effectively locked up in long-duration vehicles. That supply constraint is one reason analysts at Bernstein and Standard Chartered have lifted year-end price targets to $150,000 and $200,000, respectively.