Strategy's 'Digital Credit' Plan: Doubling Bitcoin Holdings in Seven Years
Strategy, a firm that owns about 4% of all Bitcoin in circulation, is implementing its 'digital credit' plan to manage its STRC preferred stock and increase its Bitcoin holdings.
The company has been selling common stock and using the proceeds to buy back its own STRC Series A preferred stock, effectively exchanging Bitcoins for more shares of the preferred stock.
Strategy's goal is to double its Bitcoin per common share within seven years, with any increase in Bitcoin's price providing additional upside. To achieve this, the company will closely manage its common stock, STRC preferred stock, and Bitcoin holdings.