Strategy Buys 6,556 BTC for $555.8m as Bitcoin Breaks Above $87.4k

On April 21, Strategy (formerly MicroStrategy) announced an additional purchase of 6,556 BTC for approximately $555.8 million, executed between April 14 and 20, following Bitcoin’s breakout above its monthly resistance level of $87,400. The acquisition was funded through proceeds from its Common ATM and STRK ATM programs, which involved selling roughly 1.76 million Class A common shares and over 91,000 preferred STRK shares. This latest tranche brings Strategy’s total Bitcoin holdings to 538,200 BTC—amounting to a combined investment of $36.47 billion at an average cost basis of $67,766 per coin—and has contributed to a year‑to‑date Bitcoin yield of 12.1% in 2025. Bitcoin, meanwhile, is trading near $87,273, up over 3.5% on the day, underscoring renewed bullish momentum. The move comes one week after Strategy acquired 3,459 BTC for $285.8 million and amid mounting financial obligations—including approximately $8 billion in debt, $35 million in annual interest payments, and $150 million in preferred dividends—that may force asset sales if alternative financing fails.

Acquisition Details

Recent Purchase

Between April 14 and 20, Strategy acquired 6,556 BTC for $555.8 million at an average price of roughly $84,785 per Bitcoin. The purchase was disclosed in an SEC Form 8‑K filing dated April 21, 2025.

Financing Mechanism

Strategy funded the transaction through its at‑the‑market offerings: selling approximately 1.76 million Class A common shares, raising $547.7 million, and issuing about 91,213 STRK Series A perpetual preferred shares, raising $7.8 million.

Holdings Profile

• Total Bitcoin Holdings: 538,200 BTC, representing roughly 2.5% of Bitcoin’s circulating supply, purchased at an aggregated cost of $36.47 billion.
• Average Cost Basis: $67,766 per BTC.
• 2025 Year‑to‑Date BTC Yield: 12.1%.

Market Context

Bitcoin’s price surge above $87,400 on April 21 marked its highest level since March 28, overcoming consolidation since early April and adding over $3,000 within 24 hours. The asset’s rally reflects broader macro trends, including US dollar weakness following hints at Federal Reserve leadership changes and renewed risk‑on sentiment among institutional investors.

Prior Accumulation

Just one week earlier—between April 7 and 13—Strategy added 3,459 BTC for $285.8 million at an average price of about $82,618 per coin, funded by an ATM share offering that raised $285.7 million. As of April 13, 2025, Strategy’s holdings stood at 531,644 BTC, acquired for approximately $35.92 billion at an average cost of $67,556 per Bitcoin, delivering an 11.4% YTD yield at the time.

Financial Obligations & Risk

In its recent SEC disclosures, Strategy warned that failure to secure sufficient financing through equity or debt could necessitate the liquidation of Bitcoin holdings to satisfy obligations. The company currently carries around $8 billion in debt, with annual interest payments totaling $35 million and preferred dividends of $150 million, creating material balance‑sheet risks should Bitcoin prices reverse. Analysts note that heavy debt financing amplifies exposure to BTC volatility and may prompt distress sales, potentially diluting shareholder value.

Outlook

Under Michael Saylor’s leadership, Strategy’s aggressive ATM‑funded Bitcoin accumulation has become a hallmark of its treasury strategy, leveraging market premiums on its equity to buy BTC. Financial Times commentary highlights this “high‑stakes approach” as self‑reinforcing but cautions about its sustainability if market conditions deteriorate. While Strategy has successfully capitalized on Bitcoin’s rally to extend its yield above 12%, its reliance on periodic equity issuances and the absence of substantial operating cash flows expose it to funding constraints, making future Bitcoin acquisitions contingent on sustained investor appetite and price appreciation.