Strategy, the business intelligence firm previously known as MicroStrategy, continues to solidify its position as a major corporate holder of Bitcoin through aggressive acquisition strategies. This unwavering commitment to digital assets is not only significantly expanding its crypto reserves but is also driving key financial adjustments and sparking debate regarding its funding mechanisms.
Expanding Bitcoin Portfolio
In its latest strategic move, Strategy acquired an additional 4,048 Bitcoin for approximately $449.3 million, averaging $110,981 per coin. This substantial purchase elevates the firm's total Bitcoin holdings to an impressive 636,505 BTC, acquired at a cumulative cost of $46.95 billion. Valued at over $69.24 billion at current market prices, this vast treasury now represents more than 3% of Bitcoin's maximum supply, positioning Strategy as one of the largest corporate custodians of the digital asset globally.
Strategic Financing and Dividend Hike
The latest Bitcoin acquisition was financed through a balanced, though debated, mix of capital raises. Strategy generated $425.3 million by selling 1.24 million shares of its Class A common stock, with the remaining $46.5 million sourced from its preferred share programs. Coinciding with this major financial activity, the company announced an increase in the annual dividend rate for its STRC preferred stock, raising it from 9% to 10%. This adjustment aims to enhance the attractiveness of the non-convertible security, designed to provide variable-rate income to investors.
Debate Over Funding Methods
Strategy's financing approach has drawn criticism, particularly from short seller James Chanos, who highlighted a perceived over-reliance on common stock offerings. Chanos argued that the heavy weighting towards common equity, which accounted for 90% of securities sold for the latest acquisition, suggests investor apprehension towards preferred offerings structured for higher-risk, income-seeking participants. However, Strategy's supporters counter this by pointing to the robust demand for its securities, citing that the company has raised $5.6 billion in 2025 through its initial public offerings, accounting for 12% of all US IPOs this year. This indicates a significant market appetite for Strategy's investment vehicles, irrespective of the structure.
