Strategy Inc’s Bitcoin Machine Faces a Funding Test as MSTR Stock Jumps
Strategy Inc shares rose 5.3% Thursday as bitcoin climbed, but analysts questioned how long the company’s preferred-stock funding can support bitcoin purchases. The board is asking holders to approve semi-monthly dividends on its STRC preferred shares, with a vote set for June 8. Strategy recently bought 535 bitcoin for $43 million, mostly funded by common stock sales. STRC’s $28.3 billion issuance cap could limit future bitcoin buying.