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Strategy’s $1.57 Billion Bitcoin Buy Narrows Gap With BlackRock

Strategy is financing purchases primarily through STRC, a shift pushing annual dividends past $1 billion.

Overview

  • Strategy disclosed it bought 22,337 BTC between March 9 and 15 for about $1.57 billion at an average of $70,194, bringing holdings to 761,068 BTC acquired for roughly $57.61 billion at an average cost of $75,696.
  • The company raised $1.18 billion via its STRC perpetual preferred and $396 million through common-stock at-the-market sales, marking the first week preferred stock was the primary funding tool.
  • The gap with BlackRock’s iShares Bitcoin Trust has tightened to about 21,102 BTC, positioning Strategy close to the ETF’s total holdings after consecutive large March purchases.
  • STRC currently carries an approximately 11.5% dividend, and outstanding preferred issuance has lifted annual dividend obligations above $1 billion; STRC has traded below its $100 par after its ex-dividend date, and analysts say a 25 bp dividend increase is possible to support pricing.
  • Research firm K33 cautions that the STRC model depends on stable pricing and investor confidence and notes past 5%–10% drawdowns in pullbacks, while Strategy reports about $2.25 billion in cash reserves covering roughly 25 months of dividends.