Strategy’s Preferred Shares Unlock $42 Billion for Bitcoin Acquisition

Strategy’s primary funding vehicle, the STRC preferred share, has returned to its $100 par value, clearing a significant path for substantial new Bitcoin purchases. This development coincides with the recent announcement of a $42 billion capital framework program by the company.

A Shift in Funding Strategy

The company’s newly established $42 billion program is split evenly: $21 billion is allocated to Class-A common shares, with another $21 billion designated for STRC preferred shares. This move signals a strategic pivot. To facilitate this, Strategy has dramatically increased its authorized STRC shares from approximately 70 million to nearly 283 million, while reducing authorized STRK common shares from 270 million to 40 million.

Furthermore, Strategy has expanded its distribution network by adding three new partners—Moelis & Company, A.G.P./Alliance Global Partners, and StoneX Financial—bringing the total number of sales agents to 19.

Mechanics of the STRC Instrument

STRC is a perpetual preferred equity instrument carrying an annual dividend yield of 11.5%, paid on a monthly basis. Its design incorporates a mechanism to stabilize the price near the $100 par value. Should the share price trade above this level, the company can reduce the dividend; if it falls below, the dividend is increased. This price control allows Strategy to issue new shares close to par value and directly channel the proceeds into Bitcoin investments.

The return to the $100 benchmark occurred nine trading days after the ex-dividend date of March 13, slightly faster than the typical ten-day period.

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Bitcoin Purchases and Mounting Dividend Obligations

The data for the week ending March 15 highlights a turning point: $1.18 billion of Bitcoin funding originated from STRC issuances, compared to only $396 million from common stock sales. This marked the first instance where preferred shares served as the principal funding source for Bitcoin acquisitions.

Between March 16 and 22, the company purchased 1,031 Bitcoin for $76.6 million, at an average price of $74,326 per coin. This brings Strategy’s total holdings to 762,099 Bitcoin, acquired at an aggregate cost basis of $57.69 billion. The current market price of Bitcoin sits below this average entry price.

The expanding preferred share structure carries a growing cost. With outstanding preferred capital now exceeding the $10 billion mark, the company’s annual dividend commitments have surpassed $1 billion.

Market Performance and Forward Look

Despite the enormous capital potential now available, Strategy’s common stock remains under pressure, having lost roughly 18% of its value since the start of the year. The company is scheduled to release its next quarterly figures on May 4, 2026. The period leading up to that report will reveal whether Strategy can leverage its reactivated STRC program to resume the billion-dollar weekly Bitcoin purchase pace seen in March.