A Week of Big Bitcoin and Stock Sales
Strategy has spent years building its name as the largest corporate holder of Bitcoin. Its BTC Reserve alone holds ₿840,447, worth about $58 billion.
Saylor, the company's co-founder and executive chairman, led the years-long Bitcoin-accumulation tactic. He has also been one of Bitcoin's loudest fans, urging investors to do nearly anything to get it.
The Monday update for the seven days ending Aug. 9 tells a different story.
One number jumps out: $108.6 million appears twice in the weekly update. Strategy sold that much Bitcoin, and it also spent that much buying back its Stretch preferred shares, known by the ticker STRC.
Strategy's USD Reserve now stands at $4.65 billion, while the BTC Reserve still holds ₿840,447.
Why the Preferred Share Plan Stalled
Saylor had wanted STRC to be the main funding source for new cash. Preferred shares sit between common stock and bonds: they pay a fixed return, and their holders line up ahead of common shareholders if the company runs into trouble.
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Selling those instead of common stock would have calmed investors who worried about dilution. Dilution is what happens when a company is more offering common shares, quietly shrinking the ownership slice of everyone who already holds the stock.
The plan depended on STRC trading above $100, its par value. That is the fixed price that decides whether issuing new preferred shares is profitable.
STRC has stayed below $100 since early May and recently traded at about $95. With issuance not profitable at that price, the company has gone back to its other tools: selling Bitcoin and selling common shares.
