Crypto bank Anchorage Digital has added Strategy's perpetual preferred security STRC to its balance sheet, signaling institutional backing for Michael Saylor's Bitcoin treasury firm. Anchorage co-founder and CEO Nathan McCauley stated the move signifies alignment between companies focused on Bitcoin infrastructure and corporate treasury adoption.
"Conviction compounds. Institutions don’t just talk about Bitcoin, they structure around it," McCauley noted, emphasizing the significance of capital placement by entities operationalizing both Bitcoin infrastructure and treasury strategy.
Strategy's STRC is a Nasdaq-listed perpetual preferred security designed as a high-yield instrument, paying an 11.25% annual dividend. Capital raised via STRC has historically funded the company's Bitcoin accumulation.
This institutional investment coincides with Strategy becoming Wall Street's most heavily shorted large-cap U.S. equity. Short sellers borrow shares, aiming to repurchase them at a lower price, a strategy that carries significant risk if the stock price rises.
Strategy functions as a leveraged proxy for Bitcoin, issuing securities and investing the proceeds into BTC. The company currently holds 717,722 Bitcoin, valued at approximately $46.68 billion. Recently, Strategy announced the acquisition of an additional 592 BTC for $39.8 million, with an average cost of roughly $76,020 per coin.
In a strategic shift, Strategy plans to convert approximately $6 billion in convertible bond debt into equity over the next three to six years. This move aims to reduce leverage by transforming bondholders into shareholders, though it may dilute existing investors.