Strategy Unveils $44 Billion Plan to Buy More Bitcoin, Driven By MSTR and STRC Shares

Strategy unveiled plans Monday to issue $44 billion worth of common and preferred equity, a move aimed at providing its Bitcoin-buying machine with fuel for future purchases.

The company said that it had gained the ability to issue an additional $21 billion worth of its common stock (MSTR), according to a press release. That’s in addition to $21 billion worth of its variable rate preferred share, STRC, and $2.1 billion worth of STRK, a convertible preferred share.

Although Strategy debuted its variable rate preferred share more than half a year ago, STRC has enabled Strategy to raise more than $1.5 billion this month due to rising investor interest. Not long before, the company hiked the product’s monthly dividend to 11.5% in an effort to stoke demand.

Following that move, STRC traded above its $100 par value for several days. When that threshold is reached, Strategy has signaled that it will issue STRC to fund Bitcoin purchases. However, STRC has traded below the $100 mark for seven straight trading days. Strategy’s STRK preferred stock is one of several that carries common stock conversion rights.

STRC recent surge issuance underscores Strategy’s shift toward “digital credit.” Over the past year, Strategy has embraced preferred shares as an alternative source of funding to common stock, even though that has weighted the firm with additional costs.

Strategy has spent billions of dollars on Bitcoin this month, yet the firm’s acquisition pace slowed to a crawl last week as its flagship preferred share lingered below that threshold.

The Tysons Corner, Virginia-based firm acquired 1,031 Bitcoin for $76.6 million, according to a press release. The company issued common stock to fund the purchase, which represented Strategy’s smallest in a month.

This past weekend, Strategy co-founder and Executive Chairman indicated that the company’s latest purchase could resemble a more measured step than its previous sprint to start the spring. “The Orange March Continues,” he posted to X on Sunday.

The company’s stock price rose 2% to $138, according to Yahoo Finance. Meanwhile, Bitcoin changed hands around $71,420, paring weekly losses after President Trump telegraphed a five-day pause on U.S. missile strikes against Iran, according to CoinGecko. 

On Monday, the Bitcoin-buying firm said its stockpile had reached 762,099 Bitcoin, a sum valued above $54 billion. That meant Bitcoin’s largest corporate holder sat on a nearly $3.3 billion unrealized loss, with an average purchase price of $75,694 per Bitcoin.

Last week, Bitcoin came within about $60 of that threshold before slipping on inflation concerns fueled by higher energy costs and turmoil in the Middle East. Bitcoin slipped below the $76,000 mark in February, intensifying scrutiny on the state of Strategy’s overall business.

On Myriad, a prediction market owned by Decrypt’s parent company Dastan, traders have grown slightly more confident over the past month that Strategy could sell Bitcoin this year. They foresaw an 18% chance of that happening on Monday compared to a 15% chance previously.