Michael Saylor’s Strategy just kicked its Bitcoin campaign into overdrive. It ramped up its preferred stock sale from $500 million to $2 billion, all to buy more Bitcoin with the new STRC “Stretch” shares (CryptoBriefing). Strategy now holds 607,770 BTC, worth about $72.4 billion, roughly 3 percent of all Bitcoin in circulation (CryptoBriefing, Bitbo.io).
That is not hedging. It is all‑in theater built on financing via ever‑expanding equity and preferred offerings.
Here’s what the headlines skip over:
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Strategy has sold over $3.5 billion of preferred and common shares this year to fund Bitcoin buys (CoinDesk; Barron’s)
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July purchases included 4,225 BTC ($472.5 million) and 6,220 BTC ($739.8 million) between July 7–13 and 14–20 respectively (CoinDesk)
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Entire stack funded via new securities, not earnings from software or dividends
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Strategy carries $6.5 billion in convertible debt alongside these preferreds—and relies entirely on future capital markets and BTC price momentum (TalkMarkets; Financial Times, FT)
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Critics including Chanos and others call it financial engineering with high systemic risk (Washington Post)
If Bitcoin rallies, Saylor looks prescient. If it crashes, shareholders and preferred-holders take the lumps while the company keeps issuing more shares to stay afloat. This cycle depends entirely on investor belief, not fundamentals.
This is moral hazard at scale and Saylor’s giant bet might shake the ground if the floor falls out.