Strategy Buys $200M in Bitcoin, Raises Preferred Dividend to 11.5%
Strategy purchased $200M of Bitcoin by acquiring 3,000 BTC at ~$67,700 each, boosting its total holdings to approximately 720,750 BTC valued at $49.5B, despite an unrealized $5.3B loss. The company also raised its preferred dividend to 11.5%, marking the seventh increase to support share value.
1. Bitcoin Purchase and Holdings
Strategy purchased $200 million of Bitcoin, acquiring approximately 3,000 coins at an average price of $67,700 each. This brings the firm’s total holdings to about 720,750 BTC, with a current valuation near $49.5 billion.
2. Unrealized Loss and Stock Performance
Since Bitcoin fell below $76,000 last month, Strategy’s Bitcoin stash shows an unrealized loss of around $5.3 billion. The company’s share price rose nearly 6% to about $137 on the day of the announcement, but remains down almost 60% over the past six months.
3. Preferred Stock Dividend Increase
Strategy raised its preferred stock dividend to 11.5% for March, marking the seventh consecutive monthly increase since July 2025. The 25 basis point hike aims to maintain the preferred shares near their $100 par value amid Bitcoin’s volatility.
4. Funding and Capital Structure Shift
Strategy continues to tap its preferred shares for funding, raising roughly $33 million last week and $85.5 million last month, compared with $450 million from common share sales. Executive Chairman Michael Saylor refers to this model as “digital credit,” reflecting a strategic shift to bolster Bitcoin purchases without diluting common equity.