Bitcoin holdings reach 810k coins! MicroStrategy invests an additional $255 million USD to buy more, with preferred shares possibly adjusted to semi-monthly dividends

MicroStrategy once again boosted its Bitcoin holdings by 3,273 BTC from April 20 to 26, bringing its total holdings to 818,334 BTC—about 3.9% of the total supply.

According to an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, during the period from April 20 to 26, the Bitcoin investment heavyweight Strategy (NYSE ticker: MSTR) spent approximately $255 million to buy an additional 3,273 Bitcoins at an average price of $77,906 per coin.

Strategy co-founder and Executive Chairman Michael Saylor said that the company currently holds a total of 818,334 Bitcoins, worth approximately $63.7 billion. Since launching its Bitcoin allocation in 2020, Strategy has invested a total cost of about $61.8 billion, with an average acquisition cost of $75,537 per Bitcoin.

Image source: X/@saylor

After this latest round of buying, Strategy’s Bitcoin holdings have an unrealized profit (paper gains) of approximately $1.9 billion, and its BTC holdings account for 3.9% of the total supply of 21 million BTC.

The main source of funds for this Bitcoin purchase came from selling common stock MSTR. Last week, it sold about 1.45 million shares of MSTR, raising $255 million. As of April 26, the company still has $26.47 billion worth of MSTR stock available to be issued and sold.

The company has issued four perpetual preferred stocks—STRK, STRC, STRF, and STRD—with issuance sizes of $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion, respectively. These all form part of Strategy’s “42/42” fundraising plan, aiming to raise $84 billion by 2027 through stock and convertible bond issuance to purchase Bitcoin.

Although Strategy did not sell any perpetual preferred stocks last week, STRC has become the main engine for Strategy’s Bitcoin-buying funds in recent weeks. STRC is a cumulative preferred stock with a floating interest rate and monthly dividend payments. The interest rate is dynamically adjusted to keep the stock price closely tracking its $100 par value. Currently, STRC offers an annualized yield as high as 11.5%, successfully attracting large amounts of institutional capital seeking stable returns.

To further boost STRC’s popularity, Strategy previously floated a proposal to restructure dividends, planning to increase STRC’s dividend payment frequency from “once per month” to “twice per month.” The company said this change will not only shorten the time lag for investors to receive and reinvest dividends, but also improve market liquidity and pricing efficiency, further stabilizing the stock price.

The final vote on this change to the dividend-payment mechanism will be held at the shareholders’ meeting scheduled for June 8. If it clears, the first ex-dividend date under the new arrangement will fall on June 30, and investors are expected to receive their first “half-month dividend” on July 15.

• This article is reprinted with permission from: 《Block Beast》
• Original title: 《Holding 810k Coins! Strategy Spends $255 Million to Buy More Bitcoin》
• Original author: Block Sister MEL