- Strategy executed its largest Bitcoin purchase in over 16 months, buying $2.54 billion worth of BTC last week.
- The firm raised nearly $2.2 billion by issuing STRC, its dividend-paying preferred share, which saw strong demand from dividend-capture traders.
- Executive Chairman Michael Saylor proposed semi-monthly dividends for STRC to stabilize its price and boost liquidity.
- The company’s total Bitcoin holdings now stand at roughly 815,000 BTC, valued at approximately $61.4 billion.
Strategy announced its most substantial Bitcoin acquisition since November 2024 on Monday, purchasing a staggering $2.54 billion worth of the cryptocurrency last week. The Tysons Corner, Virginia-based firm used funds from a major issuance of its flagship preferred share to expand its corporate treasury.
The company said it bought roughly 34,200 Bitcoin, raising its total stockpile to around 815,000 coins. With Bitcoin trading near $75,400, the holdings were worth about $61.4 billion, according to CoinGecko.
This purchase was financed by issuing nearly $2.2 billion of STRC, a preferred share currently paying an 11.5% monthly dividend. Consequently, STRC traded at or above its $100 target for ten consecutive trading days leading up to its ex-dividend date last Wednesday.
Andy Constan, a former Strategy bear, speculated that leveraged traders piled into STRC to capture its upcoming dividend. “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.
Following the ex-dividend date, Executive Chairman Michael Saylor proposed shifting STRC to semi-monthly dividend payments. “These proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand,” he said.
The company’s common stock had fallen 2% to $163 before Monday’s opening bell, according to Yahoo Finance. However, it surged nearly 12% on Friday as the value of its Bitcoin holdings returned to a paper profit.
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