Strategy’s expanded $64B Bitcoin buying plan leans on high-yield funding but could push BTC higher
Strategy increased its funding capacity to $64 billion for Bitcoin purchases, relying on preferred stock offerings which could drive up BTC's price.Summary
Strategy (formerly MicroStrategy) has significantly expanded its capacity to raise funds for Bitcoin acquisitions, increasing its total active issuance capacity to over $60 billion through new stock and preferred security programs. This move signals a reconfiguration of its capital stack to support its Bitcoin treasury strategy. The company can now sell up to $21 billion each of Class A common stock (MSTR) and STRC preferred stock, and up to $2.1 billion of STRK preferred stock. A key aspect of this plan is the increased focus on STRC, its Variable Rate Series A Perpetual Stretch preferred stock, which has become highly liquid and attracted institutional investors. Analysts suggest this expanded program could finance the purchase of over 450,000 BTC within five to seven months, potentially driving up Bitcoin’s price. However, concerns remain regarding the growing dividend obligations associated with the preferred stock and the company’s ability to cover interest payments without selling its Bitcoin holdings, which could negatively impact the asset.
(Source：CryptoSlate)