Strategy, the largest institutional investor in Bitcoin in the cryptocurrency market, continues to accelerate its purchases of Bitcoin through an equity issuance based on a new funding model.
The company reportedly purchased approximately 1,420 Bitcoin through STRC shares issued in Monday’s transaction.
With this transaction, Strategy completed one of the largest single-day issuances of the STRC perpetual preferred stock product to date. The proceeds from this transaction were used directly to fund the purchase of Bitcoin.
STRC stock had a trading volume of about $300 million on Monday, according to data. This number is more than double the average trading volume of approximately $124 million over the past 30 days.
Analysts note that this significant increase in trading volume is directly related to the company’s new fundraising efforts.
Strategy also updated its distribution agreement to provide greater financing flexibility. The company revised its sales agreement, known as an “omnibus sales agreement,” to allow multiple brokerages to buy and sell shares outside of normal trading hours.
The arrangement reportedly allows the company to raise more flexible funds through STRC shares.
Strategy has long been known for its institutional-scale Bitcoin accumulation strategies. The company’s management plans to continue its model of investing in cryptocurrencies using traditional financial instruments. However, analysts believe that funding tools like STRC could increase indirect access to the Bitcoin market for institutional investors.
*This is not investment advice.
