Strategy Drops $1.28 Billion on Bitcoin, Issues $377 Million in Preferred Shares
Strategy spent $1.28 billion last week to purchase Bitcoin, using funds partly raised from STRC, a variable rate preferred share with an annualized dividend of 11.5%. The company now holds approximately 738,750 Bitcoin, valued at about $50.5 billion with Bitcoin trading near $68,500. In the same period, Strategy issued $377 million in new STRC shares and nearly $900 million in common stock. STRC is designed to trade around $100 per share; when it exceeds that price, additional STRC may be issued to acquire more Bitcoin. Since STRC launched last year, Strategy has used it to help fund Bitcoin purchases, having issued $3.8 billion of the product and raised its dividend nine times. The recent acquisition represents the company’s second-largest Bitcoin purchase in 2024, trailing a January buy of 22,300 Bitcoin. The average purchase price of Strategy’s Bitcoin holdings is $75,800, leaving the company with $5.5 billion in unrealized losses. Strategy's stock rose 2.8% to $137 but remains down 58% over six months. Traders on prediction platforms see a moderate chance the company will sell Bitcoin this year.
