The expansion rate of Strategy’s Bitcoin holdings decreased significantly last week as the firm utilized proceeds from common shares for its latest acquisition.
After acquiring 34,164 Bitcoin worth $2.54 billion in the previous week, the Tysons Corner, Virginia-based company revealed it had bought an additional 3,273 Bitcoin for $255 million. This indicated a 91% reduction in expenditure on the cryptocurrency.
Despite this smaller purchase, Strategy held 818,334 Bitcoin as of Monday. With the digital asset trading near $77,800, its total holdings amounted to approximately $63.6 billion, according to CoinGecko. Last week, the company issued 1.4 million common shares.
Strategy’s recent disclosure highlighted how its variable-rate preferred share, STRC, has become crucial for its operations. After raising substantial funds through this dividend-paying product, Strategy disclosed its largest purchase in over a year and a half.
The current product offers an 11.5% monthly dividend and is intended to trade around the $100 mark. However, post the ex-dividend date on April 14, STRC has traded below that level.
Strategy acknowledged that the monthly dividend cycle of STRC makes its acquisition size somewhat predictable. Strategy co-founder and Executive Chairman Michael Saylor recently pointed out a proposal to adjust STRC towards semi-monthly dividends.
On Monday, Strategy’s common shares were stable at $171.36, as reported by Yahoo Finance, while STRC was valued around $99.60 per share.
With its holdings valued at $63.6 billion, Strategy recorded an on-paper gain of $1.8 billion. As Bitcoin reached its highest price since January, the company’s investment has recovered from being underwater earlier in the year.
As Bitcoin prices have risen above Strategy’s average purchase cost, Saylor’s social media activity reflected growing confidence. Over the weekend, he posted an AI-generated video of himself battling a bear (in