Strategy's Bitcoin acquisition pace slowed dramatically last week, falling 91% week-over-week, highlighting how its flagship preferred share has become a dominant driver of the company's cryptocurrency purchases.
A week after the firm snapped up 34,164 Bitcoin for $2.54 billion, the Tysons Corner, Virginia-based company announced it had purchased 3,273 Bitcoin for $255 million — representing a 91% decline in cash spent on the digital asset.
Despite the smaller purchase, Strategy held 818,334 Bitcoin as of Monday. With Bitcoin trading at around $77,800, the company's stockpile was valued at approximately $63.6 billion, according to CoinGecko.
In total, Strategy issued 1.4 million common shares last week to fund the latest acquisition, leaning on proceeds from common equity rather than its preferred share instrument.
Strategy's most recent disclosure underscored how its variable-rate preferred share, STRC, has emerged as a pivotal driver for its business. The product currently pays 11.5% in monthly dividends and is designed to trade around the $100 mark. However, following its ex-dividend date on April 14, STRC has traded below that threshold.
The company has acknowledged that STRC's monthly dividend cadence has made the size of its Bitcoin acquisitions somewhat cyclical. In response, Strategy co-founder and Executive Chairman Michael Saylor recently highlighted a proposal to shift STRC toward semi-monthly dividends — a move aimed at smoothing out that cyclicality.
Strategy's common shares were little changed on Monday, trading at $171.36 according to Yahoo Finance, while STRC was valued at roughly $99.60 per share.
At $63.6 billion, Strategy's Bitcoin holdings showed a $1.8 billion gain on paper. As Bitcoin has rallied to its highest price since January, the company's position has emerged from being underwater — at times earlier this year, the firm's bet had been billions of dollars in the red.
As Bitcoin has moved further above Strategy's average purchase price, Saylor's social media activity has taken on a more confident tone. Over the weekend, he shared an AI-generated video of himself fighting a bear — styled after "The Matrix" film series — in a post on X. The week prior, the billionaire shared an image depicting him lounging on a yacht.
Options traders on Monday placed a 12% probability on Strategy reducing its leading corporate Bitcoin stockpile — down from an 18% chance estimated just a month ago.
Why it matters
STRC's monthly dividend cadence has made the size of Strategy's Bitcoin acquisitions somewhat cyclical, as the company itself has acknowledged — meaning the timing of preferred share activity can influence how much Bitcoin the firm buys in any given week.
Strategy's proposal to shift STRC to semi-monthly dividends is aimed at smoothing out that cyclicality, according to the company.
Options traders placed a 12% probability on Strategy reducing its Bitcoin stockpile on Monday, down from 18% a month earlier.
