K33: Strategy's preferred stock financing to purchase Bitcoin is costly, with annualized dividend expenses reaching $725 million.

PANews October 14 news, according to The Block, K33 research head Vetle Lunde pointed out that Strategy's model of financing Bitcoin purchases through preferred stock (especially STRC), although it helped increase holdings by nearly 100,000 BTC in the first half of the year, significantly raised the cost of capital and may not be worth the cost.

K33's simulated scenario shows that if STRC financing had not been used to buy Bitcoin in the first half, Strategy's Bitcoin holdings as of Monday would have been 843,303 BTC, while actual holdings were 848,250 BTC, an increase of only 4,947 BTC. At the same time, STRC and other preferred stock have brought about $725 million in annualized dividend expenses. At the current Bitcoin price of about $83,000, this is equivalent to a cost of about 8,740 BTC per year. K33 believes that the preferred stock model adds complexity to what was originally a simple capital structure.

Habari zinazohusiana

11-02 03:02 UTC
Financing Weekly | Kalshi completes $1 billion Series G funding, led by Sequoia Capital and Wellington Management.
Kalshi completed a $1 billion Series G funding round, reaching a post-money valuation of $40 billion, nearly double its $22 billion valuation in May this year;...
11-02 02:59 UTC
Jukwaa la biashara ya hisa mtandaoni StableStock limekamilisha awamu mpya ya ufadhili wa kimkakati kwa thamani ya dola milioni 75, likishirikisha Amber na wengine.
11-02 02:40 UTC
RoboScience Machine Science inakamilisha mamia ya mamilioni ya yuan katika ufadhili wa Series A2.
11-01 05:14 UTC
Lengo la OpenAI la kukusanya fedha limepunguzwa kwa dola bilioni 10: Je, "simulizi la kuteketeza fedha taslimu" la AI linapoteza nguvu?
10-31 09:53 UTC
Rates Exchange, soko la kubadilishana riba na ua la hatari lililo kwenye mnyororo, limepokea uwekezaji kutoka Coinbase Ventures.

Financing Weekly | Kalshi completes $1 billion Series G funding, led by Sequoia Capital and Wellington Management.

Jukwaa la biashara ya hisa mtandaoni StableStock limekamilisha awamu mpya ya ufadhili wa kimkakati kwa thamani ya dola milioni 75, likishirikisha Amber na wengine.

RoboScience Machine Science inakamilisha mamia ya mamilioni ya yuan katika ufadhili wa Series A2.

Lengo la OpenAI la kukusanya fedha limepunguzwa kwa dola bilioni 10: Je, "simulizi la kuteketeza fedha taslimu" la AI linapoteza nguvu?

Rates Exchange, soko la kubadilishana riba na ua la hatari lililo kwenye mnyororo, limepokea uwekezaji kutoka Coinbase Ventures.