Michael Saylor’s Strategy Makes Third-Largest Bitcoin Purchase
Michael Saylor’s company Strategy made its third-largest bitcoin purchase ever,acquiring $2.46 billion in BTC between July 28 and August 3.
The latest purchase was for 21,021 BTC at an average price of about $117,526 per coin, the second-highest average price the company has ever paid.
Strategy funded this purchase through a combination of common stock and preferred stock, including the latest addition of Stretch Preferred Stock (STRC).
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STRC offers a variable dividend, and is overcollateralized by bitcoin at about a 5:1 ratio, meaning each dollar of STRC is backed by about five dollars worth of bitcoin.
Bitcoin financial services firm Swan explained that some investors treat STRC as a “Bitcoin-backed Treasury bill” because of the mechanics behind its issuance, which mimics a stablecoin peg.
Strategy’s total bitcoin holdings have reached 628,791 tokens, valued at over $71 billion at current prices. More than 60% of that stash was acquired after Donald Trump’s election victory.
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