Strategy Leverages Preferred Stock Issuance for $2 Billion Bitcoin Buy

In brief

• Strategy purchased 24,869 Bitcoin last week for $2 billion, marking its largest acquisition in nearly a month.
• The purchase was funded by issuing nearly $2 billion in Stretch (STRC) preferred shares right before its ex-dividend date.
• CEO Phong Lee reported a year-to-date "BTC Gain" of $6.6 billion, highlighting "digital credit" as a key driver.

Strategy unveiled its largest Bitcoin purchase in roughly a month on Monday, channeling billions of dollars into the digital asset as its flagship preferred stock crossed its ex-dividend date.

Investors had until last Friday to purchase Stretch (STRC), which currently offers an 11.5% annual dividend, to receive the product’s next monthly cash distribution. Amid heightened demand, the company issued nearly $2 billion worth of preferred shares.

With a burst of fresh capital, the Tysons Corner, Virginia-based firm scooped up 24,869 Bitcoin for $2 billion last week—Strategy’s largest acquisition in nearly a month. The move expanded the company’s holdings to 843,738 Bitcoin, a sum recently valued at $64.4 billion.

Scrutiny toward Strategy’s reliance on STRC as a way to fuel purchases intensified earlier this year as Bitcoin plunged to an 18-month low. However, the company's latest acquisition shows activity tied to the dividend-paying product is becoming increasingly routine.

The last time Strategy purchased as much Bitcoin, the company had just raised approximately $2.2 billion via STRC. The preferred stock is engineered to trade near its $100 par value, and when it trades above that threshold, Strategy can grow its holdings by issuing fresh shares. The company is currently seeking to shift STRC to a bimonthly dividend cadence.

The Bitcoin-buying firm’s shares recently changed hands at $163.58, a more than 7% decrease, according to Yahoo Finance. Over the past month, the company’s stock price has risen nearly 2%, outpacing Bitcoin’s 0.4% climb over the same period.

The leading cryptocurrency by market capitalization was valued at $76,361, falling more than 2% over the past day, according to . Earlier this month, the digital asset climbed as high as $82,500, its highest point since its double-digit slide in February.