Strategy Buys $1 B Bitcoin via Preferred Shares, Holdings Surge to 781,000 BTC
Strategy acquired roughly 14,000 Bitcoin last week for about $1 billion, lifting its total holdings to nearly 781,000 BTC valued at $55.3 billion. The purchases were entirely funded by issuing STRC preferred shares, increasing its annual dividend obligations to $1.2 billion.
1. Recent Acquisition
Strategy purchased roughly 14,000 Bitcoin last week at an average price near $71,900 per coin, investing $1 billion and raising its total holdings to about 781,000 BTC valued at $55.3 billion.
2. Funding via Preferred Shares
The firm funded the entire purchase by issuing its Series A perpetual preferred shares, STRC, which currently yield 11.5% annually and trade near the $100 par value.
3. Dividend Obligations
Following the latest issuance, Strategy faces approximately $1.2 billion in annual dividend obligations on STRC, triggering additional share issuance when trading above par to finance further Bitcoin acquisitions.
4. Comparison to BlackRock’s ETF
With nearly 781,000 BTC, Strategy is within striking distance of BlackRock’s spot Bitcoin ETF holdings of around 790,000 coins and needs about 9,000 more BTC to overtake it.