MicroStrategy Acquires 430 Bitcoins Through Preferred Stock Offering to Enhance mNAV
MicroStrategy Expands Bitcoin Holdings
MicroStrategy, the pioneer of Bitcoin reserve strategy, has purchased an additional 430 Bitcoins, bringing its total Bitcoin holdings to 629,376. However, the stock price of MSTR has recently been weak, falling 0.74% to close at $363.6 after the announcement of the purchase, still a long way from the $600 level at which it could actively issue new MSTR shares. It appears that MicroStrategy can only finance Bitcoin purchases through issuing preferred shares in the near term. The advantage of this move is that it will not dilute the amount of Bitcoin held by current shareholders (BPS) and will also help to enhance mNAV while acquiring more Bitcoins.
Fundraising Through Preferred Shares
This time, MicroStrategy raised funds 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
A total of $50.4 million was raised, all of which will be used to purchase Bitcoins. MicroStrategy acquired 430 Bitcoins at an average cost of $119,666. As of August 17, 2025, MicroStrategy 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
MicroStrategy announced in its last earnings call that it will determine whether to continue issuing common stock for BTC through the ATM program based on the internal evaluation metric “mNAV premium ratio” to provide greater flexibility in executing capital market strategies:
- Above 4 times: Actively issue stock 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 distribute preferred stock dividends
- Below 1 time: Consider issuing bonds to repurchase MSTR’s own stock
Moreover, Saylor has kindly provided the relative stock price, allowing investors to intuitively understand his approach.
MicroStrategy’s Recent Strategy
MicroStrategy can currently only finance Bitcoin purchases by issuing preferred shares, gradually increasing its mNAV. The MSTR stock price has been weak recently, falling 0.74% to $363.6 after the announcement of the purchase, while still far from the $600 mark needed for actively issuing new MSTR shares. Its current mNAV is 1.61 times.
It seems that MicroStrategy can only finance Bitcoin purchases through issuing preferred shares in the near term. The benefit of this is that it will not dilute the amount of Bitcoin held by current shareholders (BPS) and will also help to increase mNAV.
(MSTR stock price stagnation! mNAV lingering at low levels, what else does MicroStrategy have up its sleeve?)
Risk Warning
Investing in cryptocurrencies carries a high risk, and prices can be extremely volatile, potentially resulting in a total loss of principal. Please evaluate risks carefully.
