MicroStrategy, now operating under the parent name Strategy, disclosed Saturday that its corporate Bitcoin treasury reached $76 billion in book value following this week's purchase of 14,200 BTC for $1.36 billion. The total Strategy holding now stands at 715,400 BTC, representing approximately 3.4% of the maximum 21 million Bitcoin supply and worth roughly $73.5 billion at Saturday's $103,000 spot price.
Executive Chairman Michael Saylor, in a wide-ranging Bloomberg interview Saturday afternoon, telegraphed an additional $42 billion capital raise across a combination of convertible debt, preferred stock and at-the-market common equity issuance to fund continued Bitcoin accumulation through 2027. The targeted purchases would lift the company's total holdings to approximately 1 million BTC, the company's stated 2030 target.
The Funding Stack
Saylor outlined that the $42 billion capital raise would be roughly evenly split among $14 billion in convertible bonds priced at zero or low single-digit coupons with conversion premiums of 35% to 40%, $14 billion in perpetual preferred shares yielding between 6% and 9%, and $14 billion through the existing $42 billion ATM common equity program with $32 billion of remaining capacity.
Strategy's previously issued perpetual preferred stock currently trades at a 19% premium to par, signaling robust investor demand for the structured product. Convertible bond market participants estimate Strategy could price new five-year zero-coupon paper at a 39% premium to spot equity, generating approximately $14 billion in proceeds against an effective 22% dilution at the conversion threshold.
Treasury Strategy Implications
For corporate treasurers, Strategy's accelerating accumulation has triggered a wave of imitator transactions. Block, Tesla, Trump Media, GameStop, Marathon Digital and Riot