MicroStrategy refinances $560 million in interest at 8% annually, but breaks its record of purchasing Bitcoin for 12 consecutive weeks. Why?

MicroStrategy, the dominant BTC holdings of U.S.-listed companies, successfully raised $563 million in issuance preferred shares last week. However, MicroStrategy did not buy any BTC last week, and stopped increasing its BTC holdings for 12 consecutive weeks since the end of October last year. (Synopsis: Michael Sylor on the cover of Forbes!) Praised as "BTC Alchemist", BTCbig dump 80% to impact microstrategy? (Background added: Micro strategy may be forced to sell BTC? Wall Street Journal: MicroStrategy BTC Unrealized Gains Tax Runs into Billions of Dollars) According to Bloomberg, MicroStrategy's preferred stock in issuance last week, with a coupon Intrerest Rate, was sold at a discount of $80 per share, 20% below its marketing price, pushing the buyer Intrerest Rate to 10%. It was rumored to be a major concession from the company to complete the deal, raising a total of $563 million, more than double its original target. It is understood that this security, known as "perpetual preferred stock", will pay dividends quarterly and has a cumulative nature, ensuring that any unpaid dividends will eventually have to be reissued, and its conversion price is set at $1,000, which is about 200% of the recent closing price, which is a high threshold to reduce the possibility of conversion to common stock in the short term, effectively delaying the risk of dilution effects on existing shareholders. MicroStrategy to raise up to $2 billion this quarter MicroStrategy founder Michael Saylor is exploring multiple capital structures to support his BTC buying strategy. The company said that while it was more expensive than previous Issuance's ultra-low-interest convertible bonds and parity stocks, it could use the move to raise up to $2 billion this quarter. David Clott, portfolio manager at Wellesley Asset Management, said: "The 10% yield is not cheap, but given the company's background, I think it makes sense, and the fact that the company is not diluting existing shareholders' holdings like previous convertible bonds is a good outcome for them because they have opened up a whole new financing market." Micro Strategy, which previously planned to raise $42 billion over three years through equities and fixed income securities, is expected to favor fixed-income securities this quarter, in part because the company has raised nearly $17 billion through equity issuance and much less through convertible bonds. Micro strategy suspended 12 consecutive weeks to buy BTC record However, it is worth noting that Michael Saylor said that Micro Strategy did not buy any BTC last week, stopped increasing its BTC holdings for 12 consecutive weeks since the end of October last year, and the recent impact of BTC on Trump's tariff war has made some investors worry that BTC may experience a more risky pullback. As of December 2, MicroStrategy held 471,107 BTC at an acquisition price of approximately $30.4 billion, with an average purchase price of approximately $64,511 per BTC. Last week, MicroStrategy did not sell any shares of class A common stock under its at-the-market equity offering program, and did not purchase any bitcoin. As of 2/2/2025, we hodl 471,107 $BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin. $MSTR — Michael Saylor (@saylor) February 3, 2025 In addition, according to bitcoinist, since its recent inclusion in the Nasdaq 100 index, Micro Strategy has been subject to various rules and regulations, such as lock-up periods, to prevent potential insider trading. This may also be one reason why the continuous overweight of BTC by micro-strategies has been suppressed. The market also speculated that it chose to suspend its BTC holdings because MicroStrategy is changing its strategy according to market conditions, and the company may face a huge tax bill for unrealized BTC gains, which may exceed $19 billion, so it must carry out financial planning to deal with tax obligations. But despite this, there is currently little sign that MicroStrategy is abandoning its BTC buying strategy. Related reports Greenlight Capital warns: Cryptocurrency speculative bubble will collapse "short micro strategy", US BTC reserves are difficult to achieve Microstrategy through the proposal of "issuing 10 billion additional shares", paving the way for continuing to increase the position BTC, institutional BTC holdings have accounted for 14.3% of the total Michael Saylor: Traditional bonds are "poison", companies should follow Micro Strategy to buy BTC 〈MicroStrategy 8% per year Interest raised another $560 million, but interrupted the record of buying BTC for 12 weeks, why? This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".