finance
Strategy Uses Preferred Stock to Fund $2.54 Billion Bitcoin Purchase
Strategy bought $2.54 billion worth of bitcoin between April 13 and April 19, increasing its holdings to 815,061 BTC. The purchases were financed primarily through issuance of perpetual preferred stock traded under the symbol STRC. The company has raised billions through the preferred shares, which currently yield 11.5 percent.
May 14, 3:00 PM·3m read3 sources
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Strategy overtook BlackRock to become the world’s largest institutional holder of bitcoin last week. The milestone followed a purchase of $2.54 billion worth of bitcoin between April 13 and April 19, according to a Securities and Exchange Commission filing.
The acquisition was Strategy’s largest since November 2024 and brought its total holdings to 815,061 BTC, or about 3.88 percent of bitcoin’s 21 million supply. The bitcoin is currently valued at around $65 billion. Strategy financed the latest purchases mainly through issuance of perpetual preferred stock under the symbol STRC rather than through common shares or convertible debt.
From 2020 through 2024, Strategy had financed bitcoin acquisitions largely by selling convertible notes and issuing common stock. The stock at times traded at two to three times the value of the bitcoin on its balance sheet. That approach faced pressure when bitcoin prices fell in early 2025.
Convertible buyers sought more downside protection while common shareholders experienced dilution as the premium over bitcoin holdings diminished. Strategy responded by introducing preferred-stock offerings packaged as digital credit that emphasize steady income.
The flagship STRC preferred stock launched in July 2025 at $90 per share with a 9 percent coupon. It was designed to trade around a $100 par value while paying a monthly dividend. The structure allows Strategy to increase the dividend if the price falls too far below par or to issue additional shares through an at-the-market program if it rises above par.
STRC currently yields 11.5 percent and trades at $99.59. It has fallen below $95 only three times in the past nine months. Its market capitalization has grown to $8.5 billion since a $2.5 billion initial offering, making it the world’s largest preferred equity by that measure.
Trading volume in STRC has reached levels far above those of preferred shares issued by major banks. On April 13, more than $1.1 billion of STRC changed hands. That compares with average daily volumes for preferred issues from JPMorgan and Wells Fargo that rarely exceed $20 million.
