"The company, formerly known as MicroStrategy, bought 22,337 Bitcoin between March 9 and March 15, according to a regulatory filing Monday. Roughly $400 million of the purchase was funded through sales of common stock. The remaining $1.2 billion came from at-the-market sales of its "Stretch" perpetual preferred shares."
"Strategy has built a layered funding machine: It issues debt, preferred stock, and equity-all to buy Bitcoin. Each layer promises investors a different mix of risk and reward, but every layer depends on the same thing: the price of Bitcoin going up."
"During that period, Strategy has been marketing the securities as a way for investors and corporations to gain exposure to Bitcoin without taking on the cryptocurrency's trademark volatility."
Strategy Inc. acquired 22,337 Bitcoin between March 9-15, funded through $400 million in common stock sales and $1.2 billion from Stretch perpetual preferred shares. These dividend-paying securities promise investors steady yields ultimately backed by Strategy's Bitcoin holdings, marketed as a way to gain Bitcoin exposure without cryptocurrency volatility. Strategy employs a layered funding structure issuing debt, preferred stock, and equity to purchase Bitcoin, with each layer offering different risk-reward profiles but all dependent on Bitcoin price appreciation. Bitcoin treasury company Strive Inc. allocated $50 million to Stretch securities, representing over one-third of its corporate treasury, to earn double-digit yields on capital reserved for its own dividend obligations.
#bitcoin-investment #corporate-treasury #perpetual-preferred-shares #cryptocurrency-funding-strategy
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