May 2025 Closed-End Fund Buys: A Closer Look

In May 2023, the finance expert focused on closed-end fund buys, with a rapid recovery from April's lows. Despite the recovery, there were fewer opportunities for aggressive additions. The expert built up cash reserves, dipping into the cash pool in April. The summary is focused on the principal points of the article.

In the ever-evolving landscape of finance, two prominent trends have emerged in recent months: the aggressive accumulation of Bitcoin by MicroStrategy, now known as Strategy, and the renewal of share repurchase programs by Clough Capital Partners. These developments highlight the strategic maneuvering and resilience of companies navigating market volatility and economic uncertainties.

MicroStrategy's Bitcoin Accumulation

Strategy, a technology company formerly known as MicroStrategy, continues its relentless Bitcoin accumulation, marking its ninth consecutive week of purchases. This strategic move underscores its commitment to digital assets despite market volatility. The recent acquisition of 1,045 Bitcoin, valued at approximately $110 million, brings the company's total holdings to an estimated 582,000 coins, worth approximately $62.7 billion based on current market prices [1].

The firm's co-founder, Michael Saylor, emphasizes Strategy's "fully torqued Bitcoin" status, highlighting its resilience and outperforming several major companies and assets over the past year. This persistent accumulation strategy reflects Strategy's unwavering confidence in Bitcoin's long-term value proposition, even as the cryptocurrency market experiences significant price fluctuations [1].

To finance these acquisitions, Strategy has raised $112 million through the issuance of preferred stock, including $66.4 million from Perpetual Strife Preferred Stock (STRF) and $45.8 million from Perpetual Strike Preferred Stock (STRK). This capital-raising approach allows the company to maintain its aggressive Bitcoin buying program without heavily impacting its cash reserves [1].

Clough Capital Partners' Share Repurchase Programs

Clough Capital Partners has renewed share repurchase programs for three of its closed-end funds: Clough Global Equity Fund (GLQ), Global Opportunities Fund (GLO), and Global Dividend & Income Fund (GLV). Each fund can repurchase up to 5% of outstanding common shares in open market transactions through June 30, 2026. Since the program's inception in June 2023, GLV has repurchased 299,900 shares, GLQ 386,500 shares, and GLO 779,500 shares [2].

These repurchases aim to enhance shareholder value when shares trade at a discount to Net Asset Value (NAV). The renewal of these programs demonstrates Clough's commitment to addressing NAV discounts and enhancing shareholder value through strategic capital management [2].

Financial Implications and Market Context

The broader cryptocurrency market has experienced notable volatility, with Bitcoin prices oscillating between $101,000 and $108,000 in the past week. This volatility is influenced by geopolitical tensions and economic uncertainties, including tariff disputes involving the U.S. and major trading partners. Despite this volatility, institutional interest in Bitcoin remains robust, with over 226 entities now holding Bitcoin treasuries—a 10% increase in just one month [1].

Closed-end funds (CEFs), which offer high yields and strong total returns, have also seen increased investor interest. The average yield for CEFs is 9.1%, with some funds offering yields of 10% or more. These funds often trade at discounts to their NAV, providing opportunities for investors to buy portfolios at a reduced price [3].

Conclusion

The strategic maneuvers of companies like Strategy and Clough Capital Partners illustrate the resilience and adaptability of financial institutions in the face of market volatility and economic uncertainties. Strategy's persistent Bitcoin accumulation positions it as a leader in the institutional crypto space, while Clough's share repurchase programs demonstrate a commitment to enhancing shareholder value through strategic capital management. Investors and financial professionals should monitor these developments as they shape the future of finance.

References

[1] https://en.coinotag.com/strategy-reports-ninth-consecutive-week-of-bitcoin-purchases-amid-market-volatility-and-business-challenges/
[2] https://www.stocktitan.net/news/GLV/clough-closed-end-funds-announce-renewal-of-share-repurchase-4a54hi328wpt.html
[3] https://www.forbes.com/sites/michaelfoster/2025/06/14/3-secret-income-plays-throwing-off-huge-75-dividend-yields/