As Strategy’s stock price continued to fall, its dividend offer increased, and management made the media rounds to combat reports of possible solvency issues, online sleuths discovered that the company had spent $27 million on “deposit” on a new corporate jet.
It is unclear what percentage of the total purchase price the deposit represents.
Strategy previously purchased one corporate jet in 2007 (delivered in 2009) and leased another in 2012 after the original corporate jet was devastated when a hangar at Dulles Airport collapsed due to snow.
The jet was eventually repaired and put into service again for the company.
The total cost of the Bombardier 700 that Strategy purchased was $46 million ($72 million adjusted for inflation).
Read more: S&P 500 again rejects strategy addition
Not registered, but probably flashy
Strategy executives have relied on the Bombardier 700 for decades, but if they choose to stick with the brand, the total cost of the new jet is likely to exceed $50 million to $75 million.
The initial deposit was listed in the company’s mid-year quarterly report, which states the company paid $22 million. This has since been updated and increased to $27 million in deposits, presumably for customization.
The jet has not yet been delivered and is not registered with Strategy, so it is unclear under what brand it will be released or what range it will have.
The last time Strategy bought a jet; I spent twice my quarterly profit on luxury goods..