PANews January 22 News, according to CoinDesk, the credit risk of Bitcoin Treasury company Strategy has eased, as its perpetual preferred stock has a nominal value of $8.36 billion, surpassing the $8.2 billion in convertible debt. This capital structure shift to permanent capital reduces refinancing risk and balance sheet volatility. Convertible bonds carry maturity refinancing risk and volatility linked to stock prices, while perpetual preferred stock does not require principal repayment and pays fixed dividends, with a priority level between common equity and debt.
The company’s preferred stock portfolio includes four instruments, with an annual dividend total of approximately $876 million. Additionally, Strategy holds $2.25 billion in reserves to improve dividend coverage and reduce short-term financing risk. The number of common shares outstanding has increased from 76 million in 2020 to over 310 million, which may alleviate dilution pressure from future bond conversions.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Finally Scores Green Monthly Candle - U.Today
Bitcoin, the leading cryptocurrency by market cap, has now scored a month in the green, breaking a long streak of red candles on the monthly chart
The bulls managed to eke out a very modest 1.84% during March, which ended up being a rather volatile month
The leading cryptocurrency was
UTodayJust Now
F2Pool Co-Founder Says Thai Condo Bought for 2,900 BTC Was Sold for Just 7 Bitcoin
Wang Chun, co-founder of F2Pool, sold a condo in Thailand for 7 BTC, which he originally bought for 2,900 BTC in 2015. This transaction highlights Bitcoin's significant long-term opportunity cost, illustrating the risks early adopters faced when spending Bitcoin instead of holding it.
CryptoNewsFlashJust Now
Strategy preferred shares STRC raised funds yesterday that can be used to buy 2724 BTC
Gate News reports that, on April 1, according to monitoring by BitcoinTreasuries.NET, the preferred stock STRC issued by Strategy yesterday raised funds that can purchase 2,724 bitcoins.
GateNews14m ago
The Texas legislature will include prediction markets and cryptocurrency in its 2027 legislative priorities
Texas Senate vice governor Dan Patrick announced that the forecast market, cryptocurrency, and blockchain research will be priorities for the next legislative session, aiming to advance the Texas conservative agenda. Texas will evaluate cryptocurrency ATMs and strengthen coordination of federal regulatory efforts, while also focusing on the legal compliance of prediction markets. In addition, Patrick proposed studying the impact of artificial intelligence on the workforce. Texas markets and investors will closely watch the development of relevant policies.
GateNews14m ago
A certain CEX had $1.104 billion in 24-hour trading volume, with XRP, BTC, and ETH ranking in the top three.
According to CoinGecko data, on April 1, a certain CEX saw trading volume of $1.104 billion within the past 24 hours. XRP, BTC, ETH, USDT, and ONT each ranked among the top five by trading volume. This trading-volume ranking shows that XRP had the largest trading volume, reaching $113.3 million.
GateNews20m ago
