Key facts
- Strategy could create up to $30 billion in digital credit without new stock sales or price gains.
- The company plans to issue preferred shares to fund Bitcoin accumulation.
- Strategy's Bitcoin holdings were 848,517 BTC on Oct. 25.
- Third-quarter net income was $19.53 billion, boosted by digital asset gains.
Strategy is exploring the issuance of digital credit to fund further Bitcoin acquisitions, with executive chairman Michael Saylor stating the company has the capacity to generate up to $30 billion without needing to raise common stock or relying on price appreciation. During the company's third-quarter earnings call, Saylor indicated this capacity could be leveraged from its existing balance sheet. CEO Phong Le elaborated that issuing digital credit would be the primary method for acquiring more Bitcoin, suggesting that raising $1 billion to $2 billion in a month through preferred shares could be split between dollar reserves and Bitcoin purchases. As of Oct. 25, Strategy's Bitcoin holdings stood at 848,517 BTC, marking a 26% increase year to date. The company reported a third-quarter net income of $19.53 billion, largely due to a $20.91 billion gain in the value of its digital assets.