Strategy to Finance New BTC Purchases Through Preferred Shares

Bitcoin treasury company Strategy intends to finance new bitcoin purchases through preferred shares. Executive Chairman Michael Saylor stated on a Q3 earnings call that the company could create up to $30 billion in digital credit using the existing balance, without additional issuance of common shares and without further bitcoin price growth. "We could create $10 billion, $20 billion, $30 billion in digital credit," he said.

How the purchase will be financed

CEO Phong Le called the issuance of digital credit the main method of acquiring bitcoin. According to him, if Strategy raises $1–2 billion per month through preferred shares STRC, part of the funds will go into dollar reserves, and the rest into bitcoin. This reflects the company's shift from convertible debt and common stock sales to preferred shares.

Report and treasury

Net profit for Q3 amounted to $19.53 billion, mainly due to an increase in the value of digital assets by $20.91 billion. As of October 25, Strategy held 848,517 BTC, increasing its position by 26% since the beginning of the year. The $30 billion is a potential opportunity, not a declared capital raising target.

CFO change

CFO Andrew Kang is leaving his position on November 5 for personal reasons. Phong Le will oversee finances until January 1, 2027, when Reza Virasteh will become CFO.