Strategy claims that the digital credit limit can reach 30 billion USD and plans to continue increasing its holdings of Bitcoin
Bitcoin Treasury Company Strategy stated in its third-quarter earnings call that it plans to finance its continued acquisition of Bitcoin through the issuance of preferred stock. Executive Chairman Michael Saylor mentioned that the company could create up to $30 billion in digital credit using its existing balance sheet, without the need for additional issuance of common stock or relying on further increases in Bitcoin prices.
Strategy's Chief Executive Officer Phong Le indicated that issuing digital credit will be the primary means of acquiring Bitcoin. If the company raises between $1 billion and $2 billion monthly through preferred stock like STRC, part of the funds will go into dollar reserves, while the remainder will be used to purchase Bitcoin. This move marks a shift in the company's financing method from convertible bonds and common stock sales to preferred stock.
The earnings report showed that Strategy's net profit for the third quarter was $19.53 billion, primarily driven by an increase in the value of digital assets by $20.91 billion. As of October 25, the company held 848,517 Bitcoins, representing a year-to-date increase of 26%. Saylor emphasized that the $30 billion represents a potential limit, not an announced financing target.