Strategy Cuts Bitcoin Purchases 91%, Relies on 11.5% Yielding STRC Shares
Strategy’s 3,273-Bitcoin purchase for $255 million last week marks a 91% decline in spending compared to its prior $2.54 billion buy, leaving its holdings at 818,334 BTC valued at $63.6 billion. The 11.5% yielding STRC shares, recently trading near $99.60, remain pivotal to funding these acquisitions.
1. Slowed Bitcoin Purchases
Last week, Strategy acquired 3,273 Bitcoin for $255 million, a 91% reduction in spending from its previous $2.54 billion purchase of 34,164 BTC. This marks its smallest weekly buy in more than a year, driven by timing of dividend proceeds.
2. STRC Funding Mechanism
Strategy issued 1.4 million common shares and leaned heavily on its 11.5% yielding STRC preferred shares to finance Bitcoin acquisitions. Management has suggested shifting from monthly to semi-monthly dividends to smooth acquisition cycles.
3. Bitcoin Holdings Value
With 818,334 BTC on its balance sheet and Bitcoin trading around $77,800, the holdings are valued at approximately $63.6 billion, reflecting a $1.8 billion unrealized gain over Strategy’s average purchase price.
4. Dividend Trading Dynamics
Following its April 14 ex-dividend date, STRC shares have traded near $99.60, slightly below the $100 target. The variable-rate structure creates cyclical purchasing power based on dividend capital inflows.