MicroStrategy buys $1.6b in bitcoin

MicroStrategy buys US$1.6 billion more bitcoin after preferred-stock sale.

MicroStrategy, led by executive chairman Michael Saylor, added 22,337 BTC at an average price of US$70,194 per coin in a March 16 filing and now holds 761,068 coins.

The filing shows the purchase was funded mainly by US$1.1 billion of the firm’s STRC series of preferred stock sales and US$396 million of common stock.

Those 761,068 coins were acquired for about US$57.6 billion at an average cost of US$75,696 per coin.

Bitcoin traded near US$73,600 on March 16 morning, up 2.6% in 24 hours, while MicroStrategy shares rose about 4% in pre-market trading.

It was the company’s fifth-largest weekly purchase by number of bitcoins acquired.

🔗 Source: CoinDesk

🧠 Food for thought

Implications, context, and why it matters.

How MicroStrategy’s new preferred stock supports its bitcoin plan

MicroStrategy raised US$1.1 billion by selling STRC series preferred stock, a product Michael Saylor called his “iPhone moment” 1.
STRC, branded “Stretch,” aims to stay near its US$100 par value (its stated face value) through a high variable dividend. The dividend is 11.50% now and resets monthly to keep demand 2.
That steadier price supports a US$4.2 billion at-the-market program (a program that lets a company sell shares into the market over time). MicroStrategy can sell STRC shares gradually to fund more bitcoin purchases 3.
Cash from STRC can also cover dividends on other classes of MicroStrategy’s preferred stock, which helps keep the capital structure manageable 3.

MicroStrategy’s approach has shifted toward managing downside risk

MicroStrategy’s average bitcoin cost is US$75,696, which is above current market prices. Its treasury first fell below cost in early 2026, according to Yahoo Finance/Barchart.com 4.
The bigger threat is not a forced bitcoin sale since the debt is not collateralized by its bitcoin. A long bitcoin bear market could still block new capital raises 5.
That played out in the 2022 crypto downturn when equity and debt fundraising slowed sharply 6.
MicroStrategy set up a US$1.44 billion US dollar reserve to pay preferred dividends and interest on its outstanding indebtedness, adding a buffer against stress 7.