Strategy added $225 million to its cash reserves last week—without selling a single Bitcoin.
The people at the front of that payment line are preferred shareholders—investors who bought one of Strategy's specialized dividend-paying securities like STRC (Stretch), STRK (Strike), STRF (Strife), or STRD (Stride). Preferred shareholders are essentially income investors: they collect regular dividend payments rather than betting on the stock price going up, and they get paid before regular MSTR buyers. Common stockholders—the people who hold MSTR stock—collect whatever's left over.
This week, Strategy’s BTC stash stayed untouched. The company reached for shares instead—issuing new MSTR stock, which dilutes existing common stockholders (each new share issued means every existing share represents a slightly smaller slice of the company), to protect the investors at the front of the payment line.
Another week of needlessly sacrificing common shareholders to protect preferred shareholders without selling Bitcoin. You must be scared that there's not enough demand for Bitcoin to absorb your sales; otherwise, there is no excuse for purposely creating a negative Bitcoin yield.
Its 843,775 BTC were acquired at an average price of $75,476 per coin, leaving the firm with an unrealized loss of roughly $9.6 billion at current prices—a paper loss, meaning no cash actually leaves the building until coins are sold. The USD Reserve has grown by $675 million in two weeks, all from selling shares.
