#MSTR
Last week, for every $1 Strategy spent buying Bitcoin, it spent nearly $9 buying back preferred stock. Even Saylor’s “Bitcoin accumulation machine” has “maintenance costs.”
Between October 12 and 18, the company bought $22.1 million worth of Bitcoin and repurchased $193.1 million worth of STRC, its dividend-paying preferred stock.
At the current 12% dividend rate, the shares repurchased represent roughly $23.3 million in annual dividend payments. While the rate may change, this calculation shows that the company has eliminated an ongoing cash obligation.
The details of where the money came from are worth noting: nearly all the funds used to buy Bitcoin came from newly issued MSTR shares, while the stock buybacks drew on the company’s existing cash reserves.
As common shareholders absorb equity dilution, Strategy has also reduced preferred shareholders’ claim on the company’s profits through dividends. This may be a smart way to manage capital: paying cash upfront to reduce future dividend payments can give the company more room to operate—even though that cash can no longer be used to buy Bitcoin.
MSTR shareholders own both the Bitcoin and the “financing machine.” If you value the company by counting only the Bitcoin and ignoring the machine’s operating costs, you’re effectively leaving out necessary expenses.
#比特币 #MSTR
Last week, for every $1 Strategy spent buying Bitcoin, it spent nearly $9 buying back preferred stock. Even Saylor’s “Bitcoin accumulation machine” has “maintenance costs.”
Between October 12 and 18, the company bought $22.1 million worth of Bitcoin and repurchased $193.1 million worth of STRC, its dividend-paying preferred stock.
At the current 12% dividend rate, the shares repurchased represent roughly $23.3 million in annual dividend payments. While the rate may change, this calculation shows that the company has eliminated an ongoing cash obligation.
The details of where the money came from are worth noting: nearly all the funds used to buy Bitcoin came from newly issued MSTR shares, while the stock buybacks drew on the company’s existing cash reserves.
As common shareholders absorb equity dilution, Strategy has also reduced preferred shareholders’ claim on the company’s profits through dividends. This may be a smart way to manage capital: paying cash upfront to reduce future dividend payments can give the company more room to operate—even though that cash can no longer be used to buy Bitcoin.
MSTR shareholders own both the Bitcoin and the “financing machine.” If you value the company by counting only the Bitcoin and ignoring the machine’s operating costs, you’re effectively leaving out necessary expenses.
#比特币 #MSTR