Strategy Acquires 34,164 Bitcoin for $2.54 Billion in Third-Largest Purchase on Record

Strategy, formerly known as MicroStrategy, purchased 34,164 Bitcoin for $2.54 billion last week, marking its largest acquisition in over 16 months and bringing total holdings to approximately 815,000 BTC valued at $61.4 billion—representing more than 3.8% of Bitcoin's total supply. The Tysons Corner, Virginia-based company funded the purchase through $3 billion in convertible bonds and nearly $2.2 billion in STRC preferred shares, which pay 11.5% monthly dividends and are designed to trade around $100. Executive Chairman Michael Saylor proposed shifting STRC to semi-monthly dividends to stabilize price and increase liquidity, while the company's stock surged nearly 12% to $166 on Friday as its Bitcoin holdings returned to profitability.

Strategy's $2.54 Billion Bitcoin Purchase and Growing Stockpile

• ▪Traders on Myriad prediction market foresaw a 31% chance of Strategy tapping its Bitcoin stash on February 1 when the stockpile plunged underwater
• ▪Strategy's Bitcoin purchase of $2.54 billion represents the company's largest Bitcoin purchase in over 16 months
• ▪Traders on Myriad prediction market foresaw a 13% chance Strategy would pare its Bitcoin holdings in 2025
• ▪Strategy's Bitcoin stockpile was valued at around $61.4 billion with Bitcoin trading close to $75,400
• ▪Strategy's convertible bonds grant holders the option of exchanging bonds for common shares should they reach $672.40 apiece
• ▪Strategy sold $3 billion worth of convertible bonds due in 2029 days before the Bitcoin purchase announcement
• ▪Strategy purchased approximately 34,200 Bitcoin last week for $2.54 billion

STRC Preferred Share Performance and Dividend-Capture Trading

• ▪STRC traded at or above the $100 mark for 10 straight trading days leading up to the ex-dividend date
• ▪STRC is Strategy's dividend-paying preferred share that currently pays 11.5% in monthly dividends
• ▪Strategy issued nearly $2.2 billion worth of STRC preferred shares

Perspective of Myriad prediction market traders

• ▪Myriad prediction market traders assigned a 13% probability that Strategy would reduce its Bitcoin holdings during 2025
• ▪Myriad prediction market traders assigned a 31% probability that Strategy would sell Bitcoin on February 1 when holdings were underwater