Strategy Will Finance BTC Purchases with Preferred Stock

Strategy's BTC Treasury Strategy is Changing

Bitcoin treasury company Strategy, with CEO Phong Le's announcement, will shift more towards preferred stock sales to finance Bitcoin (BTC) purchases and abandon common stock sales. Le said on Bloomberg's “The Close” program, “We will start transitioning from common equity to preferred equity.” Stretch (STRC), launched in July, is the company's fourth perpetual preferred stock product, offering over 11% annual dividends targeting stability-seeking investors and financing BTC purchases without diluting the share price.

Strategy CEO Phong Le appears on Bloomberg’s “The Close” on Wednesday. Source: YouTube

STRC reclaimed its $100 par value for the first time since mid-January at Wednesday's close, becoming the “story of the day.” While the BTC price has been trading sideways around $66.800 in the last 24 hours, the stock had previously fallen below $94 when BTC dropped below $60.000. Le stated that acquiring rival BTC treasury companies is “distracting” and expressed that they will focus on the core product. Strategy (MSTR) shares closed Wednesday down 5% at $126.14. Click for detailed BTC analysis.

BTC Market Developments and Institutional Purchases

In parallel with these developments, the market is reviving: According to Arkham data, Binance's SAFU fund bought 4,545 BTC worth $304.58 million. Goldman Sachs' portfolio highlights $1.1 billion BTC, $1 billion ETH, and other altcoins. On February 9 ETF flows, BTC ETFs saw $144.9 million net inflow, while ETH ETFs saw $57 million. These institutional demands are increasing BTC futures volume.

BTC Technical Outlook

BTC is currently at $67.046,69 (+0.46%). RSI 30.31 (Oversold), downtrend dominant. Supports: $65.834 (strong), $59.997. Resistances: $68.576 (strong), $73.126. EMA20: Above $75.460 could signal recovery.

• Supertrend: Bearish
• Trend: Downtrend