Recent below-average buys lowered MicroStrategy’s BTC average cost basis
MicroStrategy’s blended Bitcoin cost basis has moved lower after new purchases executed below the company’s prior average purchase price. The mechanism is straightforward: adding coins at prices beneath the historical average pulls down the weighted-average acquisition cost for the overall position.
As reported by MEXC News, citing Arkham monitoring, roughly $168.4 million of recent Bitcoin accumulation was identified. Purchases at sub-average levels would mathematically reduce the per-Bitcoin basis when folded into the existing holdings.
What a lower cost basis means for MSTR’s valuation and risk
A lower average cost basis decreases the threshold at which the Bitcoin position is in gain territory on a mark-to-market view. It can modestly reduce downside sensitivity if spot prices weaken, but equity exposure remains highly correlated to Bitcoin due to position size and leverage.
As reported by Seeking Alpha, MicroStrategy functions largely as a leveraged Bitcoin portfolio funded by debt and equity, with prior tallies around 714,644 BTC. In that construct, a reduced cost basis may ease near-term balance-sheet pressure while preserving pronounced upside and downside convexity tied to Bitcoin moves.
News analytics summarizing the latest corporate activity note that recent accumulation coincided with weaker technicals for the shares. “MicroStrategy (MSTR) … recently purchased 2,486 Bitcoin, lowering its average acquisition cost, but faces bearish market indicators that may impact future performance,” said Yahoo Scout.
Immediate signals from MSTR price action and Bitcoin market data
At the time of this writing, based on NasdaqGS delayed quote data, MSTR closed at 125.20, down 2.70%, and traded at 124.71 after-hours, down 0.39%. These levels contextualize the equity’s recent drawdown alongside the updated cost dynamics.
Separately, as reported by Blockmanity, Bitcoin settled around $67,547 in a tight holiday-thinned session. Equity moves for MSTR typically track Bitcoin directionally, but basis changes introduce an additional, portfolio-level variable for near-term sensitivity.
How to verify MicroStrategy’s average cost basis now
Reconcile disclosed BTC totals with average purchase price math
Obtain the latest disclosed totals for Bitcoin held and aggregate acquisition cost. Compute the blended average using total cost divided by total coins, then compare the result with the stated average purchase price for consistency. Small variances can arise from rounding or fee treatment; note the disclosure conventions used.
Cross-check Arkham labels against MicroStrategy updates for consistency
Use Arkham Intelligence’s labeled wallets to approximate net inflows around reported purchase windows. Sum the flows and compare timing and magnitude with the company’s updates. Treat attribution cautiously, since labels can lag, and exchange-routing or internal transfers may obscure direct purchase sizing.
FAQ about MicroStrategy Bitcoin holdings
How many BTC does MicroStrategy hold now and what are the total cost basis and fair value of the position?
As reported by Seeking Alpha, MicroStrategy held about 714,644 BTC. Fair value equals holdings times Bitcoin’s spot price; totals fluctuate with price and any subsequent additions.
What caused the decline in holding cost, recent buys below the historical average or an accounting change?
Recent buys below the prior average lowered the blended cost basis, as reported by PANews, rather than any change in accounting treatment.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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