Strategy Unveils $44 Billion Plan to Buy More Bitcoin, Driven By MSTR and STRC Shares
Strategy announced plans to issue $44 billion in new common and preferred equity to finance future Bitcoin purchases. The company gained authorization to issue an additional $21 billion in common stock, $21 billion in variable rate preferred shares (STRC), and $2.1 billion in convertible preferred shares (STRK). Recent investor demand for STRC led to over $1.5 billion raised this month after a monthly dividend increase to 11.5%. STRC trades above $100 par value trigger new issuance to fund Bitcoin buys, but the share has recently traded below this threshold. Strategy has increasingly used preferred shares rather than common stock for funding, despite higher associated costs. The firm acquired 1,031 Bitcoin for $76.6 million—its smallest monthly purchase—bringing its Bitcoin holdings to 762,099, worth over $54 billion. The average purchase price is $75,694 per Bitcoin, resulting in a nearly $3.3 billion unrealized loss. Strategy's stock rose 2% to $138. Prediction markets estimate an 18% chance Strategy will sell Bitcoin this year, up from 15% previously.
