Strategy’s Bitcoin Bonanza: Preferred Stock Shenanigans Exposed

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Markets

What to know:

  • Strategy’s STRC preferred series just hit $1.18 billion last week-because who needs common stock when you can just preferred your way to BTC glory? That’s 3x the paltry $396 million from common sales, proving preferred stock is now the VIP lane to Bitcoin.
  • Annual dividends? Oh, just a little over $1 billion now. Because why not throw a party for investors while we’re at it?
  • STRC’s trading below par? No worries! A 25-basis-point dividend hike is probably coming-because nothing says “I care” like math.

Strategy (MSTR) has finally embraced its inner Wall Street influencer, ditching common stock for preferred shares to buy Bitcoin. Because nothing says “I’ve evolved” like printing money with a side of dividends.

Last week’s 22,337 BTC splurge? That’s their fifth-largest haul ever. Congrats, they’ve officially entered the “Bitcoin billionaire” phase of their life, minus the actual billionaire part.

The STRC preferred stock spree netted $1.18 billion-enough to buy roughly 16,800 BTC at $70k. For context, that’s more than the $396 million raised via common stock, which is now just the financial equivalent of a backup dance partner.

With an 11.5% dividend rate, that $1.18 billion issuance means $135 million in annual obligations. Total annual dividends? Over $1 billion. But hey, they’ve got $2.25 billion in USD reserves to cover it. Probably.

While common stock is down 70%, Strategy is now playing the “let’s prop up the price without diluting my coffee budget” game. Expect preferred stock to be the main act, with common equity relegated to supporting roles-like when mNAV’s being extra or they need USD reserves. Fancy!

In short, Strategy’s now funding Bitcoin buys via preferred stock, because why let common investors have all the fun?

Another dividend increase incoming?

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2026-03-17 18:56