MicroStrategy signals another bitcoin buy as funding needs remain modest
MicroStrategy co-founder Michael Saylor hinted at another imminent bitcoin purchase on Sunday, tweeting “Think ₿igger” alongside the company’s BTC acquisition tracker — the same on-screen indicator that has preceded every major MicroStrategy buy since its accumulation began in 2020.
By the numbers
- MicroStrategy has completed 105 bitcoin purchases since August 2020.
- Its most recent disclosure, on April 6, showed an addition of 4,871 BTC for $329.8 million.
- Total holdings now stand at 766,970 BTC at a blended cost basis of $75,644, a level the company says is roughly $5,000 above the current market price and tied to $14.5 billion in unrealized losses in its Q1 SEC filing.
Buying at a pace that dwarfs miner supply
MicroStrategy’s buying continues to outstrip new bitcoin issuance. In March the company added 46,233 BTC while miners produced roughly 16,200 BTC — meaning MicroStrategy absorbed nearly three times the new supply mined during the month. At its recent pace of more than 40,000 BTC per month, the firm’s next filing could push holdings past 800,000 BTC before the end of April.
How the purchases are funded
Saylor also disclosed details about STRC, MicroStrategy’s preferred equity product that has been used to fund accumulation. He said STRC’s breakeven annual return rate is about 2.05% — a low hurdle by historical bitcoin returns. If BTC appreciates faster than that over time, MicroStrategy could cover STRC’s preferred dividends indefinitely without issuing new MSTR shares. That math underpins the appeal of the funding strategy, but it also highlights its vulnerability: sustained flat or negative BTC price action while dividends compound would strain the model.
STRC has recently drawn “hundreds of millions” in inflows around its ex-dividend date, supplying capital for continued buys. MicroStrategy has signaled it will keep buying as long as investor appetite for STRC continues.
Market context
Bitcoin traded near $71,800 on Monday, according to CoinDesk, up about 7.9% on the week and holding above $70,000 for a fourth straight day following the Iran ceasefire announcement.
Whether Saylor’s “think bigger” becomes a market-moving purchase will come down to size. Given MicroStrategy’s current accumulation rhythm, the company remains one of the single largest marginal buyers on the market — a dynamic that removes supply and can have outsized effects on price discovery.
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