Michael Saylor’s Bitcoin Acquisition Strategy Faces Funding Challenges
- Preferred stock of Strategy, STRC, has traded below its $100 par value for four consecutive sessions, closing at $99.28 on April 21.
- The company recently purchased 34,164 BTC for $2.54 billion, raising total holdings to approximately 815,061 BTC valued at around $61.5 billion.
- STRC’s ATM tracker reported zero proceeds this week, contrasting with $1.76 billion raised the previous week.
- The yield on STRC is currently about 11.5%, and the company is proposing semi-monthly dividends to maintain liquidity.
- In March, the company purchased a total of approximately $1.56 billion worth of Bitcoin before pausing acquisitions due to funding difficulties.
The ongoing decline in STRC’s share price could hinder Michael Saylor’s ability to fund further Bitcoin purchases effectively, as capital raises become less efficient when shares are issued below par value.
With current holdings averaging $75,527 per Bitcoin and recent acquisitions totaling over $2.5 billion, any slowdown in funding could significantly impact future buying strategies.(Source)
