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Strategy (NASDAQ: $MSTR) has purchased $1 billion U.S. worth of Bitcoin (CRYPTO: $BTC) funded entirely through its preferred stock.
Strategy, led by Executive Chairman Michael Saylor, bought 13,927 Bitcoin last week, a haul worth about $1 billion U.S. based on an average price of $71,902 U.S. per digital coin.
The latest acquisition is notable in that it was entirely funded by $1 billion U.S. raised through sales of the company’s preferred stock called Stretch (NASDAQ: $STRC).
Strategy did not use any of its cash reserves to make the latest Bitcoin purchase.
In recent months, the company has used a combination of cash on hand and money raised from Stretch to fund its BTC purchases.
Stretch is a variable-rate preferred stock designed to provide high-yield monthly income with a stable $100 U.S. value that’s backed by the company’s Bitcoin holdings.
Currently, Stretch pays a monthly dividend that yields 11.5%. That rate adjusts monthly to keep the share price near $100 U.S.
The latest weekly purchase brings Strategy’s total Bitcoin holdings to 780,897, acquired for approximately $59.02 billion U.S. at an average cost basis of $75,577 U.S.
BTC is currently trading right around $71,000 U.S. and is down from a record high of $126,000 U.S. reached last October.
Strategy has continued buying Bitcoin as the price has fallen and languished over the past six months.
MSTR stock has fallen 59% over the last 12 months to trade at $128.64 U.S. per share.
This article has been published in Yahoo.com via Yahoo News.
Strategy Buys $1 Billion Of Bitcoin Using Preferred Stock
Serial cryptocurrency acquirer Strategy (NASDAQ: $MSTR) has purchased $1 billion U.S. worth of Bitcoin (CRYPTO: $BT...
finance.yahoo.com
