Strategy buys $1.6 billion in bitcoin using preferred shares

Investing.com -- Strategy Inc. bought nearly $1.6 billion worth of Bitcoin between March 9 and last Sunday, marking the company's largest purchase since January, according to a regulatory filing on Monday.

The company, formerly known as MicroStrategy, acquired 22,337 Bitcoin during the period. Approximately $400 million of the purchase was funded through sales of common stock, while the remaining $1.2 billion came from at-the-market sales of its Stretch perpetual preferred shares.

The Stretch securities are dividend-paying instruments similar to bonds that never mature, promising investors an 11.5% annual payout backed by the company's Bitcoin holdings.

Last week represented Strategy's largest sale of Stretch since the July initial public offering of the issue. It was also the first time in weeks the firm relied mainly on Stretch to fund its purchases.

During this period, Strategy has been marketing the securities as a way for investors and corporations to gain exposure to Bitcoin without taking on the cryptocurrency's volatility.

Strategy has developed a funding structure that includes debt, preferred stock, and equity, all used to purchase Bitcoin. Each instrument offers investors a different combination of risk and reward.

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