Key Takeaways
- Strategy plans to issue 5 million shares to buy more Bitcoin.
- The company's latest Bitcoin purchase of 130 BTC is its smallest ever.
- Strategy's Bitcoin holdings are nearing 500,000 BTC, worth $41.1 billion.
Business intelligence firm and Bitcoin investor Strategy has announced plans to offer 5 million shares of its Series A Perpetual Strife Preferred Stock.
The company stated that the proceeds will be used for working capital and Bitcoin acquisitions, though market conditions may affect the plan.
Dividend & repurchase rights
According to the announcement, the stock will pay a cumulative 10% annual dividend, with the first quarterly payments scheduled for June 30, 2025.
Strategy also retains the right to repurchase all outstanding shares if the number of shares in circulation drops below 25% of the total issued.
Recent Bitcoin purchase
This announcement comes after Strategy made its smallest Bitcoin purchase to date.
On March 17, the company bought 130 BTC for $10.7 million, at an average price of $82,981 per Bitcoin.
Before this, the smallest recorded purchase was 169 BTC in August 2024.
Market outlook
Despite concerns that the Bitcoin bull cycle may be ending, Strategy continues accumulating Bitcoin.
CryptoQuant CEO Ki Young Ju recently stated that he expects 6 to 12 months of sideways or bearish price action.
Accumulation of Bitcoin holdings
Since August 2020, Strategy has acquired 499,226 BTC at an aggregate cost of $33.1 billion, with an average purchase price of $66,360 per BTC.
If the company buys 774 more BTC (approximately $64 million), its holdings will reach 500,000 BTC, representing 2.38% of the total Bitcoin supply.
