Bitcoin holdings hit 810,000 coins! MicroStrategy invests an additional $255 million to increase its position, and its preferred shares are proposed to shift to semi-monthly dividends

MicroStrategy has added an additional 3,273 Bitcoins from April 20 to 26, bringing its total holdings to 818,334 coins, accounting for approximately 3.9% of the total supply.

According to the Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on Monday, during the period from April 20 to 26, the Bitcoin investment giant Strategy (NYSE: MSTR) invested about $255 million to purchase 3,273 Bitcoins at an average price of $77,906 per coin.

Strategy co-founder and Executive Chairman Michael Saylor stated that the company currently holds a total of 818,334 Bitcoins, valued at approximately $63.7 billion. Since initiating Bitcoin holdings in 2020, Strategy has invested a total of about $61.8 billion, with an average cost basis of $75,537 per Bitcoin.

Image source: X/@saylor

After this latest purchase, Strategy’s unrealized profit (floating gains) on its Bitcoin holdings is approximately $1.9 billion, representing about 3.9% of the total supply of 21 million Bitcoins.

The funds used by Strategy to buy Bitcoin this time mainly came from the sale of common stock MSTR. Last week, the company sold about 1.45 million shares of MSTR, generating $255 million. As of April 26, the company still has MSTR shares worth $26.47 billion available for issuance and sale.

The company has issued four perpetual preferred stocks: STRK, STRC, STRF, and STRD, with issuance scales of $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion respectively. These are part of Strategy’s “42/42” fundraising plan, aiming to raise $84 billion by 2027 through stock and convertible bond issuance to purchase Bitcoin.

Although Strategy did not sell any perpetual preferred stocks last week, STRC has recently become the main engine for Strategy’s Bitcoin funding. STRC is a floating-rate, monthly-dividend cumulative preferred stock, with a dynamically adjusted interest rate to ensure its price stays close to its $100 face value. Currently, STRC offers an annualized yield of up to 11.5%, attracting a large amount of institutional capital seeking stable returns.

To further boost STRC’s popularity, Strategy previously proposed a dividend restructuring plan, aiming to increase the dividend frequency from “monthly” to “twice a month.” The company stated that this change would not only shorten the time for investors to receive and reinvest dividends but also improve market liquidity and pricing efficiency, further stabilizing the stock price.

The proposed change to the dividend mechanism will be put to a final vote at the upcoming shareholder meeting on June 8. If approved, the first ex-dividend date under the new system will be June 30, with investors expected to receive their first “semi-monthly” dividend by July 15.

• This article is reprinted with permission from: “Block Guest”
• Original title: “Holding 810k Coins! Strategy Invests $255 Million to Add Bitcoin”
• Original author: Block Sister MEL