MicroStrategy Pauses Preferred-Share Sales Behind Bitcoin Buys

MicroStrategy halted sales of four preferred-share classes that had funded its April Bitcoin purchases, the company said in an SEC 8-K filing. The filing shows no sales of STRF, STRC, STRK or STRD during the week of April 27 to May 3, leaving MSTR common stock as the only active funding source in that period.

The 8-K reported MicroStrategy sold 492,210 Class A shares last week, generating $82 million in net proceeds. The company did not use any of those proceeds to buy Bitcoin during the seven-day window. Combined available capacity across the four preferred-share programs remains above $27 billion, and the at-the-market program for MSTR common shares still lists more than $26.4 billion of available capacity.

The halt contrasts with the company’s funding in mid-April. Between April 13 and 19, MicroStrategy financed a $2.54 billion Bitcoin purchase mainly through STRF preferred shares; STRF raised about $2.18 billion and the MSTR at-the-market program provided roughly $366 million.

Executive Chairman Michael Saylor posted on social media that no Bitcoin buys would take place “this week” and indicated purchases could resume seven days later. The 8-K documents the weekly funding activity but does not provide a reason for the pause in preferred-share issuance.

MicroStrategy is scheduled to report first-quarter results after the market close on Tuesday. Analysts expect a loss of about $0.86 per share on roughly $123 million in revenue. The company discloses holdings of 818,334 BTC acquired at an average cost of $75,532 per coin. At recent Bitcoin prices near $78,967, those holdings are valued at about $64.6 billion, representing roughly $2.7 billion in unrealized gains.

Options traders are pricing about an 8% move in MSTR after the earnings report, reflecting expected volatility around the results and any discussion of funding strategy. Investors are likely to press management on the earnings call for clarification on whether the preferred-share pause relates to pricing conditions, regulatory considerations, or quarter-end accounting practices.