Strategy Buys $2.54B Bitcoin Using $2.18B Preferred Share Sale
Strategy purchased $2.54 billion of bitcoin last week, its largest acquisition since November 2024, lifting total holdings to about 815,000 BTC valued near $61 billion. The buy was funded by $2.18 billion in STRC perpetual preferred share sales and common stock, and the company proposed semi-monthly STRC dividends to stabilize trading.
1. Record Bitcoin Acquisition
During the week ended April 19, Strategy executed its largest bitcoin purchase since November 2024, acquiring $2.54 billion worth of the cryptocurrency. This lift brings the company’s total bitcoin treasury to approximately 815,000 coins, valued around $61 billion.
2. Funding Through Preferred and Common Shares
The company financed the bitcoin purchase primarily by issuing $2.18 billion of STRC perpetual preferred shares, with the balance covered through common stock sales. While preferred shares avoid dilution of common equity, the 11.5% annual dividend increases the company’s fixed obligations.
3. Proposal to Shift Dividend Schedule
To support STRC trading at par and reduce price volatility, Strategy proposed converting STRC dividends from monthly to semi-monthly payments. This change aims to stabilize the preferred’s market price, facilitate future issuances without steep discounts, and broaden investor demand.