Strategy is looking to finance additional Bitcoin purchases through preferred-share offerings, with executive chairman Michael Saylor saying the company has the capacity to create as much as $30 billion in digital credit.
Speaking on Strategy's third-quarter earnings call, Saylor said the capacity could be generated from the company's existing balance sheet, without an additional common-stock capital raise or further Bitcoin price appreciation. "We could create $10 billion, $20 billion, $30 billion of digital credit," he said.
Preferred shares take a larger role
The potential financing capacity reflects a shift by the Bitcoin treasury company toward preferred shares such as STRC to fund Bitcoin accumulation, rather than relying primarily on convertible debt or common-share sales.
CEO Phong Le said on the call that issuing digital credit would be the main method for acquiring more Bitcoin. "The primary way to acquire Bitcoin is by issuing digital credit," Le said.
Le added that if Strategy raised $1 billion to $2 billion in a month through STRC, it could direct some of the proceeds into dollar reserves and spend the remainder on Bitcoin.
Third-quarter results
Strategy reported $19.53 billion in third-quarter net income, driven largely by a $20.91 billion gain in the value of its digital assets. Its Bitcoin holdings reached 848,517 BTC as of Oct. 25, up 26% year to date.
The $30 billion figure represents a possible capacity rather than an announced fundraising target.
Separately, the company skipped Bitcoin purchases during a recent period and spent $205 million on STRC buybacks.
