Last week, Strategy raised $377 million by issuing STRC, a product that pays a variable monthly dividend—currently 11.5% on an annualized basis. Meanwhile, the firm doled out nearly $900 million worth of its common stock.
STRC’s price is meant to be anchored around $100, and when the preferred share trades above that threshold, Strategy has signaled that it will issue more STRC and use the proceeds to buy Bitcoin. So far, the company has issued $3.8 billion worth of the dividend-paying product.
Strategy’s disclosure on Monday marks its second-largest Bitcoin purchase of the year, following its purchase of 22,300 Bitcoin in January. At the time, Strategy raised $294 million via STRC in tandem with $1.8 billion worth of the company’s common stock.
The average purchase price for Bitcoin in Strategy’s coffers fell to around $75,800 with its most recent purchase. That meant the company was carrying an unrealized loss of around $5.5 billion on its holdings, funneling $56 billion into Bitcoin over time.
