In a significant move reflecting its confidence in cryptocurrency, Strategy Inc., formerly known as MicroStrategy, has acquired nearly $170 million worth of Bitcoin. This latest purchase, which took place between February 9 and February 16, involved the acquisition of 2,486 Bitcoin, according to a regulatory filing released earlier this week.
What stands out in this transaction is the company’s financing strategy, which saw approximately half of the acquisition funded through perpetual preferred stock—specifically, its “Stretch” preferred shares. This marks the highest proportion of financing via this method since November of last year. The company raised over $78 million from the sale of these shares, amounting to about 46% of the total Bitcoin acquisition. These preferred shares were sold at a discount to their face value, suggesting a strategic pricing approach to attract investors.
In addition to the preferred shares, Strategy Inc. raised an additional $90.5 million through the sale of Class A common stock. The company’s aggressive investment strategy aligns with its longstanding objective to hold considerable amounts of Bitcoin, positioning itself as a key player in the cryptocurrency space.
This acquisition reflects a broader trend among institutional investors increasingly viewing Bitcoin as a legitimate asset class. With ongoing volatility in traditional markets, many organizations, including Strategy Inc., see cryptocurrency as a hedge against inflation and economic uncertainty. As the company continues to bolster its Bitcoin holdings, it is likely that it will remain at the forefront of discussions around digital assets and their impacts on the investment landscape.
