Strategy acquires $2.54 billion in bitcoin using high-yield perpetual preferred stock
Updated
Updated · Forbes · Apr 28
Strategy acquires $2.54 billion in bitcoin using high-yield perpetual preferred stock
10 articles · Updated · Forbes · Apr 28
The purchase raised Strategy’s total holdings to 815,061 BTC, worth about $65 billion, making it the largest institutional bitcoin holder globally.
Funding came primarily from issuing STRC preferred stock, now the world’s largest preferred equity by market capitalization at $8.5 billion, with an 11.5% yield and growing popularity among retail and institutional investors.
Strategy’s approach reduces common shareholder dilution and supports its ambitious $84 billion bitcoin acquisition plan, but relies on continuous capital inflows and carries risks for preferred holders if dividends are cut or demand wanes.
What happens to investors if Strategy is forced to cut its massive dividend payments?
How can a company pay billion-dollar obligations with no matching operational profit?
Will Ethereum's staking yield make Bitcoin-only corporate treasuries obsolete?
Why do investors keep funding a model that pays old investors with new money?
Is this a pioneering financial model or just a legally complex Ponzi scheme?