Particle.news

Strategy Buys 2,486 Bitcoin, Taking Holdings to 717,131 BTC as Funding Leans on Preferreds

Management touts resilience to an $8,000 BTC scenario, citing plans to equitize $8.2 billion in convertibles.

Overview

  • Between Feb. 9 and 16, the company purchased 2,486 BTC for about $168.4 million, funded by $90.5 million in common stock and $78.4 million in STRC preferreds that pay a 11.25% annualized cash dividend.
  • The Bitcoin treasury is valued around $48–49 billion versus a cumulative cost of $54.52 billion, leaving roughly $6–7 billion in unrealized losses.
  • Strategy reiterated that a modeled BTC price of $8,000 would still match its roughly $6.0 billion in net debt, implying a 1.0x asset coverage ratio.
  • Michael Saylor said the firm intends to equitize approximately $8.2 billion of convertible debt over the next three to six years, a plan that has drawn scrutiny after a viral CNBC exchange on refinancing.
  • Institutional interest persists as Charles Schwab lifted its stake to about 1.27 million shares valued near $168 million, even as MSTR has fallen sharply over the past six months.