A Strategic Shift: Preferred Shares Fuel Bitcoin Acquisition Spree

Strategy uses $1.18B in preferred equity for a major Bitcoin purchase, avoiding common stock dilution but adding over $1B in annual dividend costs, as shares dip below par.

For the first time in its corporate history, Strategy has relied primarily on preferred share capital to finance a major Bitcoin purchase. This marks a significant evolution in the company's funding architecture. The recent acquisition was driven by $1.18 billion from the STRC preferred series, starkly overshadowing the $396 million generated from common stock sales.

Record Purchase Powered by Preferred Equity

Between March 9 and 15, 2026, Strategy added 22,337 Bitcoin to its holdings at an approximate cost of $1.57 billion. The average purchase price was about $70,194 per coin. This transaction represents the twelfth consecutive weekly purchase for the year and ranks as the fifth-largest single acquisition in the firm's history. Total reserves now stand at 761,068 BTC, acquired at an average price of $75,696 each.

The pivot toward STRC funding is strategically clear. Strategy's common stock currently trades roughly 70% below its all-time high from November 2024. Issuing additional common shares at these levels would further dilute existing shareholders. The STRC preferred series circumvents this issue, enabling the company to accumulate Bitcoin without expanding its common equity base.

The Dividend Burden of a New Strategy

This innovative approach carries a substantial cost. With outstanding preferred shares exceeding $10 billion in value, annual dividend obligations have now crossed the billion-dollar threshold. The latest STRC issuance of $1.18 billion alone, carrying a dividend rate of 11.5%, implies yearly payments of approximately $135 million.

To manage these commitments, Strategy maintains a buffer of around $2.25 billion in USD reserves, explicitly earmarked for servicing its preferred share dividends.

Cracks in the Foundation: STRC Trades Below Par

Ironically, the very instrument powering this financial machinery is showing initial signs of strain. On March 13, the ex-dividend date, the STRC share price fell below the critical $100 mark for the first time in over two weeks, closing at $99.69. Should the volume-weighted monthly average price remain persistently below par value, Strategy could be compelled to increase the dividend rate by an additional 25 basis points to support the share price.

In response to this pressure, the company has temporarily halted its Bitcoin purchases funded via STRC issuance while the shares trade below $100. The "at-the-market" emission model functions efficiently only when the price remains above par.

The Unchanged Long-Term Vision: One Million Bitcoin

Despite this short-term pause, the long-term objective remains firmly in place. Maintaining the current pace of accumulation would position Strategy to reach one million Bitcoin by the end of 2026. This figure would represent nearly five percent of Bitcoin's total capped supply of 21 million coins. Achieving this goal within the remaining 42 weeks of the year would require an average weekly purchase of about 6,158 BTC. The year-to-date 2026 acquisitions of nearly 65,000 BTC are already above this required average—a pace that can resume if STRC shares stabilize above their par value once more.