The perpetual preferred stock of Strategy, known as STRC, played a pivotal role in the company’s Bitcoin acquisition strategy this week, recording over $1.1 billion in daily trading volume. On April 13, designated as the record date for STRC by Strategy in an X post, Michael Saylor highlighted that the security closed at par with minimal volatility, following the movement of $1.156 billion in liquidity.
The surge in trading followed Strategy’s announcement of purchasing 13,927 Bitcoin for approximately $1 billion from April 6 to April 12. This acquisition increases the company’s holdings to 780,897 Bitcoin, valued at $59.02 billion, with an average purchase cost of $75,577 per coin.
Funding for this transaction was fully secured through at-the-market (ATM) sales of 10.02 million STRC shares, generating roughly $1 billion in net proceeds. This strategic pairing of record trading activity in STRC and a Bitcoin purchase funded exclusively by the preferred program marks a significant shift for the company.
For equity investors, this could alter the balance of potential gains and risks. The increased reliance on preferred stock may reduce immediate dilution for common shareholders since fewer ordinary shares are issued immediately. However, it introduces more fixed claims ahead of equity in the capital structure, prioritizing preferred shareholders for dividends before any distributions to common shareholders.
This approach could amplify returns if Bitcoin performs well but increases dependency on market access and disciplined dividend management. While this shift might enhance short-term buying power and reduce equity dilution, it also raises financial leverage and execution risks for common shareholders over time.
Launched in July 2025, STRC was designed to operate fundamentally differently from Strategy’s MSTR common stock. It carries a variable annualized dividend rate of 11.50% as of April, with its adjustable-rate structure aimed at encouraging trading near its $100 par value. This stable price anchor enables efficient use of the company’s ATM issuance program for capital raising and conversion into Bitcoin.
Market observers note that STRC aims to offer investors double-digit returns with minimal price volatility, merging high-yield income with capital stability. Strategy’s executive chairman, Michael Saylor, stated: “STRC delivers money market–like stability with market-leading risk-adjusted returns.”
Since its inception, STRC has financed nearly 70,000 Bitcoin acquisitions, according to STRC.live. The recent $1 billion volume on April 13 could support the purchase of over 6,000 additional BTC.
Unsurprisingly, STRC’s market capitalization has surged from $3.4 billion in February to $6.36 billion today, with $21.6 billion worth of shares still available for future issuance, providing a vast runway for further Bitcoin accumulation.
Despite optimism, several analysts have raised concerns about the sustainability of this model, citing Strategy’s financial disclosures. With insufficient operating cash flow from its software business, Strategy established a $2.25 billion reserve in early February to cover nearly 2.5 years’ worth of dividends and interest payments.
Independent Bitcoin analyst Derin Olenik recently published a critical analysis, warning that STRC obligations are growing at a compound monthly rate of about 30%. If this continues, the company’s obligations could more than double every three months, with reserves potentially depleted in nine to ten months. To cover such a deficit without selling Bitcoin, Strategy might need to issue over one billion new shares, diluting common equity by nearly 400%.
However, supporters argue that STRC attracts income-oriented investors willing to accept fixed claims for limited upside, allowing Strategy to maintain Bitcoin exposure for common shareholders. They believe the model is effective as long as Bitcoin appreciates faster than the cash cost of servicing the preferred dividend.
Ultimately, STRC demonstrates both strength and risk by attracting significant liquidity while maintaining a price near par. It creates tension as each issuance round ties the broader Strategy thesis more closely to market access preservation, dividend support, and Bitcoin’s value justification.