Interestingly, after a series of buys and sells over the past few weeks, the company is left with a net increase of just 69 bitcoins despite deploying about $20 million in additional capital, crypto trader, KALEO, said on
Strategy now holds 843,775 bitcoins purchased at an average price of $75,476, maintaining its position as the largest publicly traded company holding the cryptocurrency.
Despite the losses, today’s decision to sell millions of dollars of bitcoin will likely signal to investors that Strategy will do whatever is necessary to protect its dividends on its high-yielding preferred stock, Stretch (STRC), whose dividend now stands at 12% after a recent 50 basis point increase.
Indeed, while Bitcoin and Strategy’s common stock, MSTR, are down on Monday, STRC continues to rebound from last week’s low below $75, rising another 2.1% to just under $90.
The “strategy”
Given the zigzags in strategy in recent weeks, the company’s near-term capital allocation has become more difficult for investors to predict. Assuming the prices of BTC, MSTR, and STRC are relatively stable, it’s probably safe to say that bitcoin purchases are off the table for the foreseeable future.
