**Strategy Inc.** announced on Monday that it purchased 855 Bitcoins (
$BTC ) using approximately $75.3 million during the week ending February 1, according to a filing submitted to the U.S. Securities and Exchange Commission (SEC). The funds for the purchase were raised through common stock issuance.
The company announced that the average purchase price per Bitcoin, including fees, was $87,974.
With this purchase, Strategy's Bitcoin holdings have increased to a total of 713,502 BTC, with a total acquisition cost of $54.26 billion and an average purchase price per Bitcoin of $76,052.
This information was disclosed in an 8-K report submitted on February 2, which also included an update on the company's 'at-the-market (ATM)' stock issuance program.
Funding for Bitcoin purchases raised through the sale of ATM common stock
The strategy stated that this Bitcoin purchase was made with funds raised by selling Class A common stock under the existing ATM program.
From January 26 to February 1, the company sold 673,527 shares of common stock, resulting in a net income of $10.61 million after commissions.
According to the disclosure, the strategy has significant remaining issuance limits across several ATM programs, including over $8 billion in the common stock program and additional issuance capacity in various types of preferred stock programs.
The company has repeatedly utilized stock issuance as a primary funding source for Bitcoin purchases, rather than debt directly linked to digital assets.
Long-term accumulated capital market strategy
The strategy's approach has followed a 'playbook' refined over the years.
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According to past disclosures and earnings reports submitted to the SEC, the company has been raising capital through a mix of common stock issuance, convertible bonds, and preferred stock issuance for Bitcoin purchases since 2020.
In 2020 and 2021, including the issuance of $650 million convertible bonds in December 2020, the company raised billions through subsequent convertible bond issuances, primarily using this for Bitcoin purchases.
In the following years, the company shifted its strategy towards equity-linked products while reducing its reliance on leverage, in order to continue expanding its Bitcoin holdings.
This purchase also aligns with such a pattern, and the disclosure specifies that this Bitcoin was purchased with proceeds from stock sales, not borrowing.
Dividend updates and changes to preferred stock terms
Along with updates related to Bitcoin, the strategy announced an increase in the dividend rate of the variable-rate perpetual stretch Series A preferred stock to 11.25% for the period starting from February 1.
The company also declared a cash dividend of $0.9375 per share for the preferred stock, with the payment date set for February 28.
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