Investment firm Strategy, led by Michael Saylor, is set to make a $4.2 billion Bitcoin purchase after a brief pause in acquisitions.
Planned Bitcoin Purchase
Strategy announced its intent to purchase Bitcoin worth $4.2 billion following a short interruption in purchases from late June to early July. This comes after the first week in which the company made no Bitcoin purchases since early April.
Funding through Stock Sales
To finance this acquisition, Strategy will offer a 10% Series A Perpetual Stride Preferred Stock on Nasdaq under the ticker STRD. This stock will pay a 10% dividend and will have priority over other stocks during liquidation.
Company Overview
So far, Strategy has amassed 597,325 BTC, which is equivalent to $64.4 billion. This total was achieved after spending $42.4 billion on purchases, yielding $22 billion in unrealized profits. The company's holdings now account for nearly 3% of the total Bitcoin supply, making it the largest corporate holder.
Strategy's decision to make such a significant Bitcoin purchase raises questions about the sustainability of their financing model, especially in light of potential price drops.
