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

Core Viewpoint - The company plans to issue $44 billion in common and preferred equity to support its Bitcoin purchasing strategy, with a focus on raising additional funds through preferred shares [1]. Group 1: Equity Issuance - The company has gained the ability to issue an additional $21 billion in common stock (MSTR) and $21 billion in variable rate preferred shares (STRC), along with $2.1 billion in convertible preferred shares (STRK) [1]. - The variable rate preferred share (STRC) has raised over $1.5 billion this month due to increased investor interest, following a dividend hike to 11.5% [2]. - STRC traded above its $100 par value for several days, indicating potential issuance for Bitcoin purchases, but has since traded below that threshold for seven consecutive days [3]. Group 2: Bitcoin Acquisitions - The company acquired 1,031 Bitcoin for $76.6 million, marking its smallest purchase in a month, funded through common stock [5]. - The total Bitcoin stockpile has reached 762,099 Bitcoin, valued at over $54 billion, resulting in an unrealized loss of nearly $3.3 billion with an average purchase price of $75,694 per Bitcoin [7]. Group 3: Market Context - The company's stock price increased by 2% to $138, while Bitcoin was trading around $71,420, recovering from weekly losses [6]. - The firm has shifted towards "digital credit" by utilizing preferred shares as an alternative funding source, despite the additional costs incurred [4].