Bitcoin Treasury Company Strategy is seeking to finance more Bitcoin purchases through the issuance of preferred stocks. Executive Chairman Michael Saylor stated that the company has the capacity to create up to $30 billion in digital credit.
Saylor stated during the third-quarter financial report conference call of Strategy that the company can utilize its existing balance sheet to generate this funding without the need for further common stock financing, nor is it required for the price of Bitcoin to continue to rise.
"We can create credit amounts of one billion dollars, two billion dollars, three billion dollars," said Saylor.
This potential financing capability highlights that the company is shifting to using preferred stocks such as STRC as a source of funds to accumulate Bitcoin, rather than relying primarily on convertible debt or the sale of common stock.
CEO Phong Le stated during the conference call that issuing digital credit will be the main method of acquiring more Bitcoin. "The main way to acquire Bitcoin is by issuing digital credit," said Le.
Le indicates that if Strategy raises $1 billion to $2 billion through STRC within a month, the company can put a portion of the funds into a dollar reserve, and use the remaining funds to purchase Bitcoin.
The company reported a net profit of $19.53 billion in the third quarter, mainly driven by an increase in the value of digital assets of $20.91 billion. As of October 25th, the company held 848,517 BTC, representing a 26% increase from the beginning of the year to date.
These $30 billion are merely a potential financing capacity, not an announced financing target.
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