Strategy Acquires 397 BTC for $45.6M as MSTR Stock Approaches Lows

• MicroStrategy’s latest Bitcoin purchase adds to its holdings, now totaling 641,205 BTC, demonstrating sustained commitment to cryptocurrency as a treasury asset.

• This acquisition was funded primarily through new MSTR common stock issuance, raising $54.4 million, with additional funds from preferred shares.

• Despite the purchase, Bitcoin’s price dipped to $107,852, highlighting ongoing market challenges and MicroStrategy’s average acquisition cost remaining at $74,057 per BTC.

MicroStrategy acquires 397 BTC for $45.6M, boosting holdings to 641,205 amid volatile markets. Discover funding details, stock impacts & future outlook. Stay informed on corporate crypto strategies.

What is MicroStrategy’s Latest Bitcoin Acquisition Strategy?

MicroStrategy’s Bitcoin acquisition involves the purchase of 397 BTC valued at around $45.6 million, executed at an average price of $114,771 during a brief market recovery last week. This move extends the company’s pattern of consistent, smaller-scale buys, aligning with CEO Michael Saylor’s weekly announcements. As of November 2, 2025, MicroStrategy now holds 641,205 BTC, acquired overall for about $47.49 billion, maintaining a year-to-date BTC yield of 26.1%.

How Did MicroStrategy Fund This Recent BTC Purchase?

MicroStrategy funded the acquisition primarily through a return to issuing MSTR common stock after a three-week pause that utilized preferred shares. The company raised $54.4 million from new MSTR emissions, with a portion allocated to the Bitcoin buy and the remainder covering general operational expenses. Additional funds came from $4.9 million via STRK preferred shares and $2.3 million through the STRD facility, suggesting some proceeds may address prior obligations like mandatory dividends for STRC shares.

This approach underscores MicroStrategy’s flexible financing model, balancing equity dilution with debt instruments to support its Bitcoin treasury growth. According to financial analysts at Bloomberg, such strategies allow corporations to leverage market conditions without immediate liquidity strains, though they increase shareholder dilution risks. The funding disparity—more raised than spent on BTC—indicates prudent cash management amid volatile crypto prices, where Bitcoin traded at $107,852 post-purchase, fostering bearish sentiments.

Historically, MicroStrategy has amassed its Bitcoin holdings through at-the-market (ATM) offerings, convertible notes, and preferred stock sales. This latest transaction aligns with its long-term vision of Bitcoin as a superior store of value, as emphasized by Saylor in public statements. Data from on-chain analytics firm Glassnode shows corporate adoption like this contributes to reduced selling pressure from miners, stabilizing long-term price floors.

Frequently Asked Questions

What is the Total Value of MicroStrategy’s Bitcoin Holdings After This Purchase?

MicroStrategy now holds 641,205 BTC, acquired for a total of approximately $47.49 billion at an average price of $74,057 per Bitcoin. This accumulation reflects a strategic focus on cryptocurrency reserves, providing exposure to Bitcoin’s growth potential while maintaining a low average cost basis compared to current market prices around $107,000.

Why Is MicroStrategy Issuing More MSTR Stock for Bitcoin Buys?

MicroStrategy issues additional MSTR stock to fund Bitcoin acquisitions because it enables rapid capital raising at market rates without relying heavily on debt. This method, as voiced by CEO Michael Saylor, supports the company’s goal of maximizing Bitcoin per share over time, even if it leads to short-term dilution. It’s designed to capitalize on Bitcoin’s volatility by buying during recoveries, echoing natural language queries about corporate treasury strategies in crypto.

Key Takeaways

• MicroStrategy’s 397 BTC Addition: This purchase, valued at $45.6 million, continues a series of weekly acquisitions, now totaling 641,205 BTC with a 26.1% YTD yield.
• Funding Through Equity Issuance: Primarily via $54.4 million in new MSTR stock, supplemented by preferred shares, highlighting a shift back from debt-focused strategies.
• Market Impact and Stock Performance: Despite the buy, BTC price fell to $107,852, and MSTR traded at $269.30 near six-month lows, signaling investor caution on dilution effects.

MicroStrategy’s MSTR Stock Performance and Dilution Concerns

MicroStrategy’s common stock (MSTR) closed at $269.30, approaching a six-month low despite the Bitcoin acquisition. This decline reflects investor concerns over accelerated share issuance, which has diluted equity value more rapidly than anticipated. Earlier promises suggested a decade-long issuance pace tied to Bitcoin’s four-year cycles, but recent actions have front-loaded the ATM facility, buying at higher averages without market-timing adjustments.

The company’s market net asset value (mNAV) stands at 1.3 times its Bitcoin holdings’ value, a reduced premium indicating waning confidence in sustained acquisitions. As noted by experts at Reuters, this premium compression occurs when corporate buying fails to counterbalance selling from funds, whales, and miners. MicroStrategy’s strategy no longer fully offsets new coin supply, contributing to BTC’s volatile trading environment.

Furthermore, the firm has signaled reluctance to pursue acquisitions of rival companies’ Bitcoin treasuries. Many peers, per reports from CoinDesk, are adopting cautious stances, pausing buys amid regulatory uncertainties and high prices. Smaller entities view direct BTC exposure as risky without MicroStrategy’s scale, preferring diversified assets.

Strategy has acquired 397 BTC for ~$45.6 million at ~$114,771 per bitcoin and has achieved BTC Yield of 26.1% YTD 2025. As of 11/2/2025, we hodl 641,205 $BTC acquired for ~$47.49 billion at ~$74,057 per bitcoin. $MSTR $STRC $STRK $STRF $STRD

— Strategy (@Strategy) November 3, 2025

MicroStrategy’s unwavering Bitcoin accumulation, even at elevated prices, positions it as a leader in corporate crypto adoption. However, persistent dilution and market headwinds challenge short-term stock performance. Looking ahead, as Bitcoin navigates potential recovery cycles, MicroStrategy’s low average cost basis offers resilience, encouraging investors to monitor upcoming earnings for insights into sustained treasury expansion and strategic adjustments.

MSTR sank toward yearly lows, as Strategy continued its dilution, despite previously promising a longer time frame for common stock issuance. | Source: Google Finance

In summary, MicroStrategy’s Bitcoin acquisition of 397 BTC reinforces its commitment to cryptocurrency reserves, funded innovatively through MSTR issuance and preferred shares. While stock pressures persist due to dilution, the strategy’s long-term focus on BTC yield could yield substantial returns if market conditions improve. Investors should consider these dynamics when evaluating corporate exposure to digital assets.