Mark Cuban says he sold most of his Bitcoin after failed hedge narrative 'disappointed' the billionaire
Mark Cuban sells most of his Bitcoin after losing faith in its hedge capabilities against fiat currency.
CoinDesk1 min read
Strategy Adds $2.5 Billion in Bitcoin as STRC Dividend Traders Drive Largest Buy Since 2024
TL;DR
Strategy made its largest Bitcoin purchase in over 16 months, acquiring $2.54 billion worth of BTC last week. The firm aims to stabilize its stock price and grow demand through proposed semi-monthly dividends for its preferred share.
Key points
- Strategy purchased $2.54 billion in Bitcoin last week
- This is the largest Bitcoin purchase in over 16 months
- Strategy's total Bitcoin holdings now amount to around 815,000 BTC
- Proposed dividends aim to stabilize price and grow demand
- STRC preferred share currently pays 11.5% monthly dividends
Mentioned in this story
Strategy
In brief
- Strategy made its largest Bitcoin purchase in over 16 months, scooping up $2.54 billion last week.
- One former Strategy bear speculated that traders using leverage piled into Strategy’s flagship preferred share to capture its upcoming dividend.
- On Friday, Strategy’s Michael Saylor proposed semi-monthly dividends for the preferred share to “stabilize price, dampen cyclicality, drive liquidity, and grow demand.”
Strategy reported its largest Bitcoin purchase in over 16 months on Monday, scooping up $2.54 billion worth of BTC last week as traders snapped up its flagship preferred share to receive an upcoming dividend.
The Tysons Corner, Virginia-based firm said that it purchased roughly 34,200 Bitcoin, lifting its stockpile to a total of around 815,000 Bitcoin. With Bitcoin trading close to $75,400, the sum was valued at around $61.4 billion, according to CoinGecko.
The Bitcoin-buying firm announced that it had issued nearly $2.2 billion worth of STRC, Strategy’s dividend-paying preferred share, which currently pays 11.5% in monthly dividends and is designed to trade around the $100 mark.
STRC’s ex-dividend date passed last Wednesday, representing the day on which investors buying the dividend-paying product no longer receive the next scheduled payment. Leading up to that threshold, STRC traded at or above the $100 mark for 10 straight trading days, indicating that the preferred share now valued at $8.5 billion saw consistent demand.
Andy Constan, a former Strategy bear and founder of research firm Damped Spring Advisors, wagered that STRC saw heightened demand from dividend-capture traders, who typically buy stocks immediately before the ex-dividend date and sell shortly after.
“Dudes I know were all in [STRC] leveraged long last night and have never done a div capture trade in their life,” he said in an X post last week.
Before Monday’s opening bell, the company’s stock had fallen 2% to $163, according to Yahoo Finance. On Friday, Strategy’s shares surged nearly 12% to $166, as the Bitcoin-buying firm’s industry-leading stockpile for the first time in months.
Q&A
How much Bitcoin did Strategy purchase recently?
Strategy purchased approximately $2.54 billion worth of Bitcoin, totaling around 34,200 BTC.
What is the purpose of Strategy's proposed semi-monthly dividends?
The proposed semi-monthly dividends aim to stabilize price, dampen cyclicality, drive liquidity, and grow demand for Strategy's preferred shares.
What is the current value of Strategy's Bitcoin holdings?
Strategy's total Bitcoin holdings are valued at around $61.4 billion, with approximately 815,000 BTC in stock.
