Strategy (MSTR), the world’s largest publicly traded holder of bitcoin, continued with its string of large weekly purchases, adding $2.13 billion worth of BTC.
The latest addition to the company’s bitcoin stash was funded through the sale of $1.8 billion in common stock and $294.3 million of its perpetual preferred equity Stretch (STRC).
MSTR Shares sold 10,399,650
STRC Shares sold 2,945,371
Looks like most of cash came from MSTR dilution. I don't understand why they are issuing so much MSTR vs STRC.
I think they issue more MSTR rather than STRC because they rather dilute common stock holders rather than have to pay dividends. That way they don’t have to eat too much into their cash reserves.
What is STRC benefit to Strategy if they don't want to pay the dividends?
If MSTR had a 2x, 3x Mnav then I would see why they would sell MSTR but when it is a 1x or below I would think they would sell the preferred STRC shares.