Strategy

Strategy grew its bitcoin holdings 25 percent so far this year, reaching 843,775 coins, more than any other institution on the planet. The amount of bitcoin backing each share is up 4.5 percent this year, and the company raised 17.06 billion dollars through share sales to keep buying. When bitcoin rallies, this stock has historically moved several times faster.

Instead of just piling on more risk, Strategy spent this quarter tidying up. It bought back 1.5 billion dollars of its own debt at an 8 percent discount, cutting convertible debt 18 percent down to 6.71 billion dollars. It also built a cash reserve of 3.75 billion dollars, enough to cover dividends and interest for over two years, and has never missed a payment in 18 months.

Bitcoin fell hard this quarter, and Strategy reported a net loss of 8.22 billion dollars, almost entirely from writing down the value of its coins. Its average purchase price is about 75,476 dollars per bitcoin while bitcoin trades near 64,915 dollars, meaning the entire stash is underwater right now.

Strategy is now selling bitcoin to fund its obligations, roughly 218.4 million dollars worth so far this year, just to cover preferred dividends. Those dividend payments hit 400.7 million dollars in a single quarter, and the company raised its main dividend rate to 12 percent because that security has been trading below its 100 dollar target price. The software business is small by comparison, bringing in just 122.4 million dollars in revenue.