Strategy Spends $267 Million on Bitcoin, Issues STRC for Third Straight Week
Strategy continued purchasing Bitcoin during recent price declines, but at a slower pace than earlier acquisitions. Last week, the company acquired roughly 2,900 Bitcoin for $267 million, following previous purchases of $1.2 billion and $2.1 billion. Strategy now holds 712,600 BTC, valued at $62.7 billion. Bitcoin’s price recently dropped below $90,000 amid economic uncertainty in Japan and potential U.S. government shutdown concerns. Strategy primarily funded its latest purchase through issuance of common stock, raising $264 million, and also issued more variable rate preferred (STRC) shares, which pay an 11% annualized dividend. STRC funding raised $421 million this month. If STRC trades above $100, Strategy issues more to keep its price in range and uses proceeds to acquire more Bitcoin. The company's cash reserves cover 30 months of STRC dividends. Strategy’s mNAV stood at 1.08, indicating issuing equity remains effective for accumulating Bitcoin. Analysts expect the company to continue aggressive BTC purchases as prices remain low, prioritizing Bitcoin-per-share increases. Prediction markets suggest mNAV is more likely to fall than rise significantly in the near term.
