Strategy buys $2.5b bitcoin in biggest purchase since Nov 2024

US software company Strategy said in an SEC filing that it bought US$2.54 billion of bitcoin in the week ended April 19.

It funded most of the purchase with US$2.18 billion from STRC preferred share sales.

The company said the rest came from common share sales and that the purchase was its biggest weekly bitcoin buy since November 2024.

Strategy now holds about US$61 billion in bitcoin after a three-week rally in the token pushed its stock up nearly 30% last week.

The company has leaned more on preferred shares as common stock sales raised dilution concerns.

STRC carries an 11.5% dividend, and Strategy has proposed paying those dividends twice a month instead of monthly to help keep the shares near par value.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Strategy uses a variable dividend to keep STRC near par

STRC preferred shares carry an 11.5% dividend that can change each month. Strategy resets the rate to keep the shares close to their US$100 par value and curb price swings 1.
That setup has helped Strategy raise about US$8.54 billion through STRC, which it markets as Stretch, a short-duration, high-yield savings alternative 1.
The company is relying less on common-stock sales to fund bitcoin purchases, which may ease dilution worries for existing shareholders 2.
STRC is not secured by Strategy’s bitcoin. Holders have a preferred claim on the company’s remaining assets, which leaves them exposed if asset values fall 1.

Bitcoin exposure through a public company adds funding risk

Strategy has moved from software into what some describe as a levered Bitcoin financial vehicle, creating a model for public companies that build funding plans around bitcoin exposure 3.
The approach gives investors an indirect way to access bitcoin when direct ownership is blocked by regulatory or custody limits 3.
Financing choices, including preferred equity like STRC, now shape the company story more than its original software business 4.
The model works best when bitcoin gains outpace Strategy’s funding costs. Cash dividends on preferred shares come before common stock 4.
A long bitcoin slump or weaker demand for STRC could squeeze common shareholders and reduce Strategy’s room to buy more bitcoin 4.