Strategy Invests $43 Million in Bitcoin, Funded by Preferred Shares
Strategy recently purchased $43 million worth of Bitcoin, acquiring 390 BTC in its largest purchase of the asset in nearly a month. The company disclosed the purchase in a press release on Monday. The Tysons Corner, Virginia-based firm now holds approximately 640,800 Bitcoin.
According to crypto market data provider CoinGecko, Strategy’s Bitcoin holdings were valued at around $73.6 billion, with Bitcoin trading near $114,800 on Monday. Shortly after markets opened, Strategy shares rose 1.9% to $294, as reported by Yahoo Finance. Despite this increase, the company’s stock price has declined 4.8% from $314 over the past month.
Funding the Purchase with Preferred Shares
Strategy financed the recent Bitcoin acquisition through the issuance of preferred shares. This marks a shift from its historical practice of raising capital primarily through common shares. The company has not issued common shares since late September, when it completed a $22 million Bitcoin purchase and had raised a total of $128 million — leaving it with extra liquidity amid approaching dividend payments.
Throughout this year, Strategy has introduced various types of preferred shares to fund its Bitcoin purchases. Some of these preferred share products include quarterly dividend payments, providing an alternative funding approach while the company’s main common share issuance remains untapped.
Smaller Bitcoin Buys Reflect Funding Shift
As Strategy reduced its issuance of common shares, its Bitcoin purchases have become relatively smaller. Recent acquisitions included 196 BTC, 219 BTC, and the latest 390 BTC — among the smallest purchases disclosed this year.
“It’s Orange Dot Day,” said Strategy co-founder and Executive Chairman Michael Saylor on X (formerly Twitter) last Sunday, sharing a chart highlighting the company’s historical Bitcoin acquisitions.
Market Outlook and Analyst Perspectives
Citi analysts recently described Strategy as “a bellwether of BTC’s potential upside and downside momentum,” assigning a price target of $485 per share. However, they cautioned that declines in Bitcoin’s price could lead to magnified losses for Strategy shareholders.
The disclosure comes as Bitcoin hovered near a two-week high, benefiting from easing geopolitical tensions between the U.S. and China, which have positively influenced risk assets.
Crypto sentiment appears optimistic: In a Myriad market survey, more than 71% of respondents sided with crypto trader Mando’s prediction that Bitcoin will regain $120,000, rather than fall to $100,000 as forecasted by crypto entrepreneur KBM. (Myriad is a unit of Dastan, the parent company of the editorially independent news outlet Decrypt.)
As the world’s largest corporate holder of Bitcoin, Strategy continues to navigate funding strategies while maintaining its substantial digital asset portfolio amid evolving market conditions.
https://decrypt.co/346070/strategy-shares-rise-43-million-purchase-largest-four-weeks
