Strategy plans to raise capital through preferred stock to increase its Bitcoin holdings, with Saylor stating it could create up to $30 billion in digital credit.
October 30 - Strategy Executive Chairman Michael Saylor stated during the third-quarter earnings call that the company can utilize its existing balance sheet to create up to $30 billion in digital credit to support further Bitcoin purchases, without the need for additional common stock issuance or reliance on further Bitcoin price increases. Saylor said the company has the capacity to create $10 billion, $20 billion, or even $30 billion in digital credit.
Strategy CEO Phong Le stated that issuing digital credit will be the company's primary method for acquiring more Bitcoin. If the company raises $1 billion to $2 billion through STRC preferred stock within a month, part of the funds could be allocated to USD reserves, with the remainder used to purchase Bitcoin.
The earnings report shows that Strategy's third-quarter net income was $19.53 billion, primarily driven by a $20.91 billion increase in digital asset value. As of October 25, the company holds 848,517 BTC, with a year-to-date increase of 26%. It should be noted that $30 billion represents potential financing capacity, not a financing target the company has already announced. Additionally, Strategy disclosed that CFO Andrew Kang will resign on November 5 for personal reasons. Until incoming CFO Reza Virasteh takes over on January 1, 2027, the finance function will be overseen by Phong Le.