Peter Schiff claims that MicroStrategy has lost its ability to use preferred stock (STRC) as a primary funding channel for Bitcoin acquisitions. He noted that while STRC shares recovered to near $99.4 from a low of $75 earlier this year, the company is no longer issuing new preferred stock to finance its crypto strategy.
Data from weekly filings shows that MicroStrategy last sold STRC shares between May 11 and 17, raising approximately $1.95 billion. Since then, the company's remaining STRC capacity has remained stagnant at $17.51 billion. To fund recent Bitcoin purchases, the firm has shifted to selling class A common stock (MSTR).
In late August, MicroStrategy resumed Bitcoin buying using proceeds from MSTR sales, acquiring 4,603 BTC in one week and 1,665 BTC in late September. Additionally, the company spent $75.7 million from its cash reserves to purchase 950 BTC. Between September 21 and 27, the firm used $103.5 million from common stock sales to repurchase STRC shares.
As of September 27, MicroStrategy maintained a $5.02 billion cash reserve intended to cover debt interest and preferred dividends. Executive Chairman Michael Saylor stated that the 30-day historical volatility of STRC reached 9% as of October 2, which is lower than the 10% volatility recorded for the SPDR S&P 500 ETF.
