Strategy indicated on Monday that it spent $1 billion on Bitcoin last week, adding to its stockpile using proceeds that came solely from its flagship preferred share.
Strategy’s latest purchased showed that the firm led by co-founder and Executive Chairman Michael Saylor was capable of amassing significant amounts of Bitcoin without diluting common shareholders, a fear expressed by onlookers as its stock price tumbled last year.
The company’s recent reliance on STRC has raised questions about the approach's sustainability. To address doubt about whether Strategy could consistently pay dividends on its products, the company shored up $2.25 billion in cash reserves last year.
“If Bitcoin grows faster than that over time, we can cover our dividends indefinitely without issuing new MSTR shares,” he said, hinting at the pressure that the company’s penchant for issuing common shares has historically put on shareholders.
