To fund its latest acquisition, Strategy issued $90.5 million worth of common stock. Meanwhile, the firm sold $78.5 million worth of its variable rate, or STRC, preferred stock. The product currently pays monthly dividends at an annualized rate of 11.25% in cash.
The balance underscores a shift in Strategy’s approach to acquiring Bitcoin in recent months, as the company’s total value has approached that of its holdings. Issuing preferred shares has become a bigger priority, as products that Michael Saylor has described as “digital credit.”
As the company’s stock price has tumbled 64% over the past six months, investors have fixated on the company’s ability to weather a sustained downturn. That focus has recently shifted toward the company’s convertible debt, which is subject to redemptions starting in 2028.
"Refinance where, Michael?" co-anchor Becky Quick dryly asked, questioning whether banks would lend to Strategy at that point. The exchange has since gone viral on social media, becoming a meme in financial circles, with critics calling Saylor’s stance absurd.
As Bitcoin has retreated from record levels in October, Strategy's Bitcoin holdings have plunged in value, while swinging to a loss on paper. After spending $54.5 billion on the asset, the company was down around 12% on its Bitcoin, or around $3.6 billion.
