"Strategy expands preferred share issuance…buys about 1,420 more bitcoins"

Strategy (formerly MicroStrategy), the largest publicly listed holder of Bitcoin (BTC), has reportedly made additional Bitcoin purchases using funds raised through preferred share issuance.

According to CoinDesk, a crypto-focused media outlet, Strategy is estimated to have recently bought about 1,420 bitcoins with proceeds secured through the issuance of its perpetual preferred stock, STRC.

STRC is a perpetual preferred stock product introduced in July last year as part of Strategy’s effort to finance Bitcoin purchases. Trading volume in STRC was tallied at about $300 million on the day, far exceeding the roughly $124 million average daily volume over the past 30 days.

The estimate was calculated based on the size of At-the-Market (ATM) share issuance executed in the market. The methodology assumes that 40% of trading volume above $100 million reflects ATM issuance, then estimates the Bitcoin purchase amount after excluding broker fees of about 2.5%.

Strategy also bought about 18,000 bitcoins worth roughly $1.3 billion last week.

Strategy describes STRC as having a structure similar to a short-term, high-yield savings product. The company recently raised STRC’s dividend rate to 11.5%, and the preferred shares pay monthly cash dividends.

Strategy also said in a recent filing that it revised its sales agreement to allow multiple sales agents to sell the same securities in a single day, including during off-exchange hours. The move is intended to enable additional trade execution in premarket or after-hours sessions.

Meanwhile, Strategy shares rose about 3% in premarket trading on the day to around $143 per share.