Strategy, the world’s leading corporate Bitcoin holder, has announced its intention to expand its Bitcoin portfolio. Despite the absence of a Bitcoin price surge or additional common stock issuance, Michael Saylor, the Chairman of the company, stated that they have the capability to generate up to $30 billion in capital.
Preferred Shares to Play Key Role in Bitcoin Purchases
According to a report from Cointelegraph dated October 30, during a meeting to discuss the company’s third-quarter results, Saylor mentioned that this financing could be secured through preferred share issuances and other strategies.
Strategy CEO Phong Le emphasized that preferred share issuance will become the primary vehicle for financing Bitcoin acquisitions. He suggested that the company could potentially raise between $1 billion and $2 billion per month through STRC preferred shares, allocating a portion to dollar reserves while investing the remainder in Bitcoin.
In the third quarter, Strategy reported a net profit of approximately $19.53 billion. This success was largely attributed to about $20.91 billion in gains from the revaluation of digital assets, including Bitcoin. As of October 25, Strategy’s Bitcoin holdings had increased by 26% year-to-date, reaching 848,517 BTC.
Continued Strong Inflows into Bitcoin ETFs
Alongside Strategy’s acquisition plans, U.S.-based spot Bitcoin ETFs have been witnessing significant capital inflows. Data from SoSoValue indicates that the funds registered a net inflow of $17.07 million on October 29, marking the fourth consecutive day of net gains.
The highest inflow of the day was recorded by BlackRock’s IBIT fund, which amassed $12.8 million. Fidelity’s FBTC fund received $10.53 million, Bitwise’s BITB fund attracted $8.76 million, and Morgan Stanley’s MSBT fund added $4.16 million. Conversely, Grayscale Bitcoin Mini Trust saw an outflow of $15.35 million, and WisdomTree’s BTCW fund lost $3.84 million. Other funds, including GBTC and ARKB, reported no net movement.
While Bitcoin ETFs have experienced four days of inflows, Ethereum funds have simultaneously seen outflows, highlighting a divergence in ETF demand for the two assets. The scale of Strategy’s future Bitcoin acquisitions will depend significantly on the secured financing and how much of it remains in dollar reserves.
