Strategy eyes more Bitcoin buys as Saylor touts $30B credit capacity

Michael Saylor, the executive chairman of Bitcoin treasury company Strategy, has revealed that the firm could potentially generate up to $30 billion in digital credit without needing to raise new common-stock or see further Bitcoin price growth. This capacity to create digital credit is based on the company's existing balance sheet, according to Saylor, during the third-quarter earnings call. He emphasized that this could be achieved through various amounts such as $10 billion, $20 billion, or even the full $30 billion.

Strategy's CFO and CEO, Phong Le, confirmed that digital credit issuance would be the primary method for acquiring more Bitcoin, replacing convertible debt and common-share sales as the main funding source. If Strategy issues between $1 billion and $2 billion in a month via its STRC preferred shares, a significant portion could be kept in dollar reserves, while the rest would be spent on Bitcoin.

The company reported a net income of $19.53 billion for the third quarter, largely due to a $20.91 billion gain in the value of its digital assets. As of Oct. 25, Strategy's Bitcoin holdings had grown to 848,517 BTC, marking a 26% increase year to date.

It's important to note that the $30 billion figure represents a possible capacity for digital credit creation, rather than an announced fundraising target. In a related development, Strategy skipped Bitcoin purchases in favor of spending $205 million on repurchasing its STRC preferred shares.