Strategy Leverages Preferred Stock Issuance for $2 Billion Bitcoin Buy

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 offe

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.

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