- Strategy added 1,665 Bitcoin to its digital asset treasury over the past week for $142.7 million.
- It also repurchased $151.7 million worth of STRC shares.
- The company proposes a daily dividend accrual for its preferred shares to boost its corporate portfolio.
Strategy (MSTR) has followed up on its $75.7 million Bitcoin (BTC) purchase with a $142.7 million acquisition over the past week. The move netted the company 1,665 BTC for $85,681 per BTC.
Its latest purchase announcement comes hot on the heels of Executive Chairman Michael Saylor’s cryptic post on Sunday. The post showed a chart of its all-time Bitcoin purchases with the caption, “Even more orange.”
Strategy’s Bitcoin Haul
To date, the digital asset treasury (DAT) company has already accumulated 847,666 BTC, accounting for nearly 4.22% of Bitcoin’s 20.09 million circulating supply. It has an aggregate purchase price of $63.95 billion and an average cost of $75,437 per BTC.
At the same time, Strategy has repurchased roughly 1.53 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for $151.7 million. This aligns with the business’s digital credit securities repurchase program, aiming to optimize its capital structure, reduce service costs, and enhance value for common equity holders.
Source of Funding for the Recent Acquisitions
Strategy disclosed that it used proceeds from a recent sale of 1.47 million shares of Class A Common Stock (MSTR) for $246.2 million to fund its BTC purchase and STRC repurchase. It pulled the remaining funds from its US dollar holdings.
So far, $723.5 million of the institution’s preferred stock remains available under its digital credit securities repurchase program. Additionally, $1 billion in MSTR shares is available for repurchase.
Meanwhile, Strategy maintains $5.020 billion in US dollar reserves for preferred stock dividends and debt interest payouts. At its current $6.714 billion debt, it can cover 3.8 years of payments to holders.
Moreover, the company keeps $1.001 billion in cash and cash equivalents. This offers instant liquidity for Bitcoin treasury purposes.
Daily Dividend Proposal on Preferred Shares
On Friday, Saylor and Strategy CEO Phong Le unveiled a proposal to amend the dividend structures of its preferred stocks, namely STRC, STRF, STRK, and STRD. The institution is pushing for their dividend payments to follow a daily schedule.
Under the model, dividends would accrue each calendar day, including weekends and holidays. Payments would then be credited on the next business day.
Saylor and Le claimed that the measure would reduce reinvestment lag. It would also enhance Strategy’s liquidity, market efficiency, and price stability.
Furthermore, they see it as a boost to Strategy’s competitive advantage, and its increased demand could drive Amplification and Bitcoin Per Share. In other words, they aim to turn their preferred shares into cash-equivalent, income-generating instruments that appeal directly to money market and institutional investors.
