Strategy Leverages Preferred Stock Issuance for $2 Billion Bitcoin Buy
Strategy made its largest Bitcoin purchase in about a month, buying 24,869 Bitcoin for $2 billion, following increased investor demand for its 11.5% annual dividend preferred stock, Stretch (STRC). To qualify for the next monthly dividend, investors needed to buy STRC before its recent ex-dividend date. The company issued nearly $2 billion in new STRC shares, facilitating the Bitcoin acquisition and bringing its total holdings to 843,738 Bitcoin, valued at $64.4 billion. Strategy regularly uses STRC offerings to fund Bitcoin purchases, a practice that has become routine despite previous scrutiny during Bitcoin price declines. STRC is designed to trade near $100, and new shares are issued when it exceeds this value. The firm plans to increase its dividend distribution frequency. Recently, Strategy stock traded at $163.58, down over 7%, but rose 2% in the past month, outperforming Bitcoin’s 0.4% gain. CEO Phong Lee reported a year-to-date “BTC Gain” of $6.6 billion and a fiscal 2025 gain of 101,873 Bitcoin, valued at $7.8 billion. Lee indicated accelerated growth expected in 2026.
