Strategy buys $76.5M in Bitcoin this week using common stock

Investing.com -- Michael Saylor's Strategy Inc. purchased roughly $76.5 million worth of Bitcoin, using proceeds from common stock sales to fund the acquisition.

The company, formerly known as MicroStrategy, bought 1,031 Bitcoin between March 16 and March 22, according to a regulatory filing Monday. The purchase was made using proceeds from at-the-market sales of its Class A common stock.

The acquisition follows a purchase the week prior in which Strategy raised $1.2 billion through its "Stretch" perpetual preferred shares to fund most of its largest Bitcoin purchase since January.

When Strategy sells common stock to buy Bitcoin, existing shareholders' ownership stake gets smaller. When it issues preferred shares instead, it avoids that dilution but takes on a fixed obligation at an 11.5% rate. Saylor has been rotating between the two funding methods depending on market conditions.

Strategy now holds more than 762,000 Bitcoin, valued at roughly $54 billion. Its average purchase price is about $75,700, above Bitcoin's current trading level near $70,000.

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