Strategy Raises $1.2B via Preferred Shares, Buys $1.57B in Bitcoin
Strategy purchased $1.57 billion of Bitcoin last week, adding 22,337 BTC to its 761,000-coin holding valued at roughly $55.8 billion. The company raised nearly $1.2 billion through its 11.5% preferred shares, driving the product’s market capitalization up 30% over the past month.
1. Preferred Share Fundraising
Last week, Strategy raised nearly $1.2 billion by issuing its 11.5% dividend-paying preferred shares, up dramatically from just $377 in proceeds the prior week. The issuance lifted the product’s market capitalization to around $5 billion, a 30% increase over the past month.
2. Largest Bitcoin Acquisition
The firm acquired $1.57 billion worth of Bitcoin, or 22,337 BTC, marking its largest purchase so far this year. These additions bring Strategy’s total holdings to approximately 761,000 Bitcoin, valued at about $55.8 billion.
3. Holdings Valuation and Losses
With an average purchase price near $76,700 per coin, Strategy’s Bitcoin stockpile has incurred paper losses of roughly $1.7 billion. The recent dip in Bitcoin prices has narrowed those losses as the market price approaches the firm’s cost basis.
4. Stock Performance and Dividend Burden
Strategy’s stock climbed to a 45-day high of $148 before trading near $145.40, despite a 56% decline over six months. Its preferred share pays about $0.9583 monthly per share, resulting in over $1 billion in monthly dividend obligations, supported by $2.25 billion in cash reserves.