Strategy Buys $200 Million in Bitcoin, Raises STRC Dividend to 11.5%

• Strategy purchased approximately $200 million worth of Bitcoin, bringing total holdings to around 720,750 BTC.
• The company raised STRC’s monthly dividend to 11.5%, marking its seventh increase since launch.
• Despite a 6% stock bounce, Strategy shares remain down nearly 60% over six months, while Bitcoin holdings sit at an unrealized loss.

Strategy disclosed its third-largest Bitcoin purchase of the year on Monday, adding approximately $200 million worth of Bitcoin to its balance sheet as it continues to lean on both common equity and preferred stock to fund accumulation.

The Tysons Corner, Virginia-based company acquired roughly 3,000 Bitcoin at an average price of around $67,700 per coin. The latest purchase brings Strategy’s total holdings to approximately 720,750 Bitcoin, currently valued at about $49.5 billion.

Despite the addition, the company remains in an unrealized loss position. Bitcoin has traded below the $76,000 mark since last month, and at roughly $68,452 on Monday, Strategy’s Bitcoin holdings were down about $5.3 billion on paper.

The company funded the purchase partially through the issuance of STRC, its variable-rate preferred stock, though the majority of capital came from selling common shares. Last week, Strategy raised $7.1 million via STRC compared to $230 million from issuing common stock. In total, the company raised about $33 million more than it spent on Bitcoin during the period.

Strategy has increasingly positioned STRC as a funding vehicle that allows it to raise capital without diluting common shareholders. Co-founder and Executive Chairman Michael Saylor has described the instrument as “digital credit,” presenting it as a dividend-paying alternative to traditional financing.

Over the weekend, Strategy announced that it was raising STRC’s monthly dividend to 11.5%, marking the seventh increase since the product was introduced in July as a low-volatility, high-yield cash instrument. The company has issued $3.4 billion worth of STRC to date, including a $2.5 billion IPO in July that was upsized due to demand. Last month alone, Strategy raised $85.5 million via STRC compared to $450 million through common share sales.

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Shares of Strategy rose nearly 6% to around $137 on Monday, though the stock remains down almost 60% over the past six months.

The firm’s aggressive Bitcoin accumulation strategy continues amid heightened volatility in digital asset markets. Last month, Strategy reported a fourth-quarter loss of $12.4 billion due to fluctuations in the value of its Bitcoin holdings.

Still, Saylor reiterated confidence in the company’s approach, stating at the time that Strategy was strengthened by its “shift to digital credit, which aligns with our indefinite Bitcoin horizon.”

Market observers continue to scrutinize the sustainability of the company’s dividend commitments. Strategy has built up billions in cash reserves, effectively pre-paying dividends, while prediction market traders on Myriad recently placed a 15% probability on Strategy selling Bitcoin this year, down from 28% a month earlier.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

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