Strategy Must Restore STRC to Par to Resume Bitcoin Purchases

Strategy has used perpetual preferred shares such as STRC to broaden its capital-raising toolkit, with the stock structured around a $100 par value. Keeping the shares near par matters because a persistent discount can weaken investor confidence and complicate future issuance. STRC’s performance is also being measured against SATA, a higher-yielding preferred security that has held closer to the $100 benchmark.

As of Sept. 1, 2026, Strategy had spent a cumulative $635 million repurchasing STRC in an effort to lift the preferred shares back toward par, according to the latest report. The expanded buyback has yet to close the gap: STRC was trading at $97.34, about 2.66% below its $100 face value, while SATA remained around par despite offering investors a higher dividend yield.

Strategy Inc. has used common and preferred share sales to finance its bitcoin treasury, making Stretch, or STRC, a central part of its capital-raising model. The variable-rate perpetual preferred stock pays a 12% annualized dividend and is designed to trade near its $100 stated value. Its performance matters because a return toward par would bolster investor confidence, lower Strategy’s funding constraints and strengthen its ability to meet preferred-stock distributions while maintaining long-term bitcoin exposure.

By Aug. 5, 2026, STRC had climbed more than 30% from a late-June low near $71 to about $94, as bitcoin stabilized above $60,000. Strategy sold 5,226 bitcoin for $321 million in three transactions, reducing its holdings to roughly 842,137 coins, and added $250 million to its U.S. dollar reserve, lifting the total to $4 billion and dividend coverage to about 2.3 years. The company has also repurchased $106 million of STRC and identified Sept. 8 as a possible, though uncertain, date for a return to $100 par.

Strategy launched STRC, a floating-rate perpetual preferred stock, in July 2025 with a par value of $100 to raise funds for expanding its Bitcoin holdings. Its dividend rate is adjusted monthly to keep the market price close to par. Although STRC ranks ahead of common stock for repayment, it remains exposed to risks tied to Strategy’s Bitcoin holdings, financing and dividend coverage. Its sharp discount to par is now testing its positioning as a stable income investment.

STRC closed at $91.79 on June 16, 2026, an 8.2% discount to its $100 par value and its third-lowest close since listing in July 2025, implying an annualized yield of 12.53%. Bitcoin was trading at about $65,000 at the time. After Strategy repaid $1.5 billion of convertible debt, its cash dividend coverage fell from 24 months to seven months. The same day, Strive’s SATA began paying daily dividends at a 13% annual rate while trading at $99.99, further drawing income-focused capital away from STRC.

Strategy, formerly known as MicroStrategy, raises funds through common and preferred stock offerings to continue accumulating Bitcoin. STRC is its perpetual preferred stock with a $100 par value and an 11.5% dividend yield. When the market price falls below par, the company's ability to raise funds through at-the-market offerings becomes constrained, weakening the steady buying demand that the market had expected.

After going ex-dividend on March 13, 2026, STRC closed at $99.69 and remained below the $100 threshold through March 18, prompting Strategy to pause Bitcoin purchases through that channel. The company had bought 17,994 BTC and 22,337 BTC in the previous two weeks, respectively, for a combined 40,331 BTC. The abrupt halt in this funding engine has raised questions about whether BTC could retest $70,000.

Strategy has long raised funds through stock and debt offerings to accumulate Bitcoin. Its perpetual STRC preferred stock attracts capital with a high dividend, with the proceeds then used to buy Bitcoin. The instrument has no maturity date, but its sustainability could be undermined by the dividend burden, Bitcoin price volatility and a breakdown in financing markets.

In the week ending July 19, 2026, Strategy was estimated to have added about 7,000 Bitcoin after raising funds through STRC, though the actual amount raised has not been disclosed. Alexander Blume, CEO of investment adviser Two Prime, said investors may be underpricing the risk of a major market dislocation given STRC's 11.5% annualized yield, warning that there is “no free lunch” behind the high return.

Strategy uses its STRC perpetual preferred stock to raise capital, creating an ongoing funding channel for Bitcoin purchases. Its at-the-market program allows the company to issue additional shares depending on market conditions. STRC’s liquidity and market demand will directly affect Strategy’s ability to expand its Bitcoin holdings, as well as investors’ assessment of its financing ceiling and dilution risks.

The latest reports revised STRC’s Monday trading volume to $1.5 billion from an initial estimate of $1.16 billion and said it funded Strategy’s purchase of 11,707 Bitcoin, above the earlier estimate of 7,800. Trading volume could set another record on Tuesday, while Delphi Digital warned that the STRC financing model faces a $28 billion scale ceiling.

Strategy, formerly known as MicroStrategy, has continued raising funds through equity and debt instruments to buy Bitcoin under Michael Saylor, making BTC a core asset. The company recently raised capital through STRC perpetual preferred stock carrying an 11.5% dividend rate. Saylor said an annual Bitcoin gain of more than 2% would be enough to cover the dividend, underscoring the company's highly leveraged capital strategy.

Strategy added 3,468 Bitcoin on April 10, according to the latest report, which did not disclose the dollar value or average purchase price of the transaction. The purchase brought the company's total Bitcoin holdings close to 770,000 BTC. As proceeds raised through STRC continue to be converted into Bitcoin, the company's holdings are moving toward a new milestone.

Strategy (MSTR) uses its perpetual preferred stock, Stretch (STRC), as a long-term financing vehicle, attracting capital through a relatively stable share price and dividend mechanism before deploying the proceeds into Bitcoin. The model can reduce the dilution pressure associated with frequent common-stock issuance while giving investors a gauge of whether the company can continue expanding its crypto holdings.

STRC recorded $333 million in trading value on Wednesday, its seventh-highest single-day volume since issuance, while moving by just $0.01 intraday, indicating stability despite heavy trading. Based on the amount raised that day, Strategy may have used the proceeds to buy more than 2,000 additional Bitcoin.

Strategy, the world's largest corporate holder of Bitcoin, launched perpetual preferred stock STRC in July 2025 to raise U.S. dollar funding through share issuance and buy more Bitcoin. STRC targets a price near its $100 par value, with its high dividend designed to attract income-focused investors while allowing the company to continue expanding its crypto holdings.

Strategy said STRC's annualized dividend rate would remain at 11.5% in April 2026, ending a run of seven consecutive increases since the product's launch. With STRC's market price gradually stabilizing and approaching its $100 par value, the company will not raise the rate this month but will continue using the stock as a fundraising vehicle for future Bitcoin purchases.

Strategy, formerly known as MicroStrategy, has treated Bitcoin as a core treasury asset since 2020 and has long financed purchases through sales of common and preferred stock. The strategy has made it the world’s largest corporate holder of Bitcoin, but its high-interest financing costs and exposure to cryptocurrency price swings remain under market scrutiny.

Strategy raised funds by selling Class A common stock and preferred stock from March 2 to March 8, 2026, then spent about $1.28 billion to buy 17,994 Bitcoin at an average price of $70,946 each. The transaction increased its total holdings to 738,731 Bitcoin, continuing its long-term Bitcoin treasury strategy.