The world's largest 'Bitcoin corporate giant' Strategy (formerly MicroStrategy) is again making big purchases. According to an 8-K document submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, the company spent approximately $739.8 million from July 14 to 20 to buy 6,220 Bitcoins, averaging $118,940 per Bitcoin.
Holding amount exceeds 600,000, paper profit of $28.1 billion
This latest purchase brings Strategy's Bitcoin holdings to 607,770 coins, valued at over $7.18 billion, with an average acquisition cost of $71,756 per Bitcoin, totaling an investment cost of approximately $43.61 billion.
As of July 21, the Strategy's paper profit (unrealized profit) from Bitcoin holdings is approximately $28.1 billion, which can be considered a glorious achievement.
The source of funds for this round of buying mainly comes from three major fundraising channels, including the sale of common stock MSTR and three series of perpetual preferred stocks: Strike (STRK), Strife (STRF), and Stride (STRD).
According to the announcement, last week, Strategy sold 1,636,373 shares of MSTR common stock through the 'At-the-Market (ATM)' mechanism, raising $736.4 million. Currently, the company has $21 billion in ATM financing capacity, with $17.04 billion still available.
Regarding preferred stocks, 5,441 shares of STRK were sold to raise $700,000; 2,000 shares of STRF raised $200,000; and 31,282 shares of STRD raised $3 million. Under the previously reported $4.2 billion capital increase plan, there is still $4.18 billion of financing capacity available.
The 4th series of preferred stock 'Stretch (STRC)' makes its debut.
In addition, on Monday, Strategy announced the launch of the 4th series of perpetual preferred stock product 'Stretch (STRC)', which will be publicly offered under the Securities Act of 1933, intending to issue 5 million shares, with the proceeds to be used for general corporate purposes, including purchasing more Bitcoins and working capital needs.
According to the announcement, STRC has a par value of $100 per share, adopts a floating interest rate and cumulative dividend system, and dividends will be determined by the board of directors or its authorized committee based on the financial situation, paid at the end of each month, with the first dividend payment scheduled for August 31, with an initial annualized dividend yield of 9%.
Perpetual preferred stocks have no maturity date, but promise fixed dividends, making them suitable for stable income allocation. Strategy has previously launched three series of perpetual preferred stocks, which are:
Strike (STRK): convertible, with an annual interest rate of 8%;
Strife (STRF): non-convertible, cumulative preferred stock, offering a fixed annual interest rate of 10%;
Stride (STRD): non-convertible, non-cumulative preferred stock, offering a fixed annual interest rate of 10%.
These fundraising activities are part of the company's '42/42' plan, aiming to raise a total of $84 billion by 2027 for continued Bitcoin purchases.
In recent months, Strategy has actively expanded its financing methods and launched a diversified portfolio of preferred stocks. According to investment bank TD Cowen's analysis, these preferred stocks 'offer attractive yields and price appreciation potential, and are expected to have lower volatility than common stock MSTR or Bitcoin.'
"Strategy buys another 6,220 Bitcoins and pushes the 4th series of preferred stock 'Stretch (STRC)' to continue betting big" was first published on (BlockKe).
