Strategy Funds Fifth $1B BTC Purchase via Preferred Stock, Holds 780,897 BTC
Strategy funded a fifth $1B Bitcoin purchase this year via preferred stock, acquiring 13,927 BTC at a $71,902 average to bring its holdings to 780,897 BTC. Fundstrat warns preferred issuance demand may expire after the ex-dividend date, potentially creating a flow air pocket and pushing Bitcoin toward the mid-$60,000s.
1. Fifth $1B Bitcoin Acquisition
Strategy completed its fifth Bitcoin purchase of at least $1 billion this year by acquiring 13,927 BTC at an average price of $71,902, raising its total Bitcoin holdings to 780,897 BTC. The company’s aggressive accumulation has driven a substantial rise in its digital asset valuation over the past five years.
2. Preferred Stock Issuance Mechanism
The company issues preferred shares to fund Bitcoin purchases without diluting common shareholders. This structure enables investors to receive dividends tied to the firm’s digital asset acquisition, directly linking preferred share demand to Bitcoin buy flows.
3. Potential Demand Air Pocket
Fundstrat warns that preferred issuance demand may dissipate after the ex-dividend date, removing a key source of marginal Bitcoin buying power. This flow dynamic could create an air pocket, potentially pushing Bitcoin prices toward the mid-$60,000s and affecting Strategy’s valuation volatility.