Strategy Buys 2,500 Bitcoin for $168M, Issues $78.5M Preferred Shares at 11.25% Dividends
Strategy purchased 2,500 Bitcoin for $168million last week, lifting holdings to 717,100 BTC valued at about $48billion as prices dipped near $67,000. It funded the acquisition by issuing $90.5million of common stock and $78.5million of preferred shares paying 11.25% annual dividends.
1. Bitcoin Acquisition
Strategy purchased 2,500 Bitcoin last week for $168 million, marking its fourth-largest buy of the year and bringing total holdings to approximately 717,100 BTC. The firm’s reserve now sits valued at roughly $48 billion as Bitcoin traded near $67,000.
2. Funding Strategy
The recent acquisition was financed by issuing $90.5 million of common stock and selling $78.5 million of variable-rate preferred shares carrying an 11.25% annual dividend. This reflects a strategic shift toward using preferred share issuance as a source of digital credit.
3. Portfolio and Market Reaction
Strategy’s sizable Bitcoin reserve drove a 2.6% drop in its share price to $130, contributing to a 64% decline over the past six months. The firm has maintained a $2.25 billion cash buffer, spending $600,000 less on Bitcoin in the latest period than it raised.
4. Debt Management Plans
Strategy plans to equitize $8.2 billion of convertible debt maturing from 2028 over the next three to six years rather than repaying in cash. Management has indicated it will refinance any deep Bitcoin price downturns, avoiding forced sales even if prices fall 90%.