Last week, Strategy (formerly MicroStrategy) disclosed in a regulatory filing that it had added 34,164 bitcoin to its treasury at a cost of approximately $2.54 billion, or an average price of $74,395 per coin. This marks the third-largest single bitcoin purchase in the company's history. Total holdings now stand at 815,061 BTC, with aggregate spending of roughly $61.56 billion at an average cost basis of $75,527 per bitcoin. With the current Bitcoin price hovering near $75,000, the firm's position is close to break-even following recent market volatility.
This latest acquisition pushes Strategy's bitcoin holdings ahead of BlackRock, which holds about 802,823 BTC primarily through its spot bitcoin ETF products. Strategy, led by Executive Chairman Michael Saylor, remains the largest publicly traded corporate holder of bitcoin. Saylor signaled the move ahead of the announcement, posting a message over the weekend urging observers to “think even bigger,” a phrase that has become synonymous with the company's ongoing accumulation campaign.
Funding Strategy: Equity Issuance and STRC Preferred Stock
Strategy financed the purchase through a combination of equity issuance and preferred stock sales. The company raised about $366 million through the sale of common shares and approximately $2.18 billion through its perpetual preferred stock offering known as STRC (Variable Rate Series A Perpetual Stretch Preferred Stock). The STRC instrument has become a central funding vehicle for recent acquisitions. It carries a variable dividend structure designed to maintain a price near par value ($100) while offering an annualized yield of about 11.5%. The company recently proposed shifting dividend payments from a monthly to a semi-monthly schedule to improve liquidity and reduce reinvestment delays.
Strategy continues to expand its capital-raising capacity. Billions of dollars in additional common and preferred shares remain authorized for issuance under existing programs. These efforts are part of a broader plan to raise substantial capital through equity and convertible instruments to fund further bitcoin purchases through 2027.
The scale of Strategy's holdings now represents more than 3.8% of bitcoin's fixed supply of 21 million coins, underscoring the firm's outsized role in the market. Shares of Strategy declined about 2.5% in pre-market trading following the disclosure, reflecting investor sensitivity to both bitcoin price movements and the company's continued reliance on capital markets to fund acquisitions.
Bi-Weekly STRC Payouts: Increasing Dividend Frequency
Strategy is moving to increase the frequency of payouts on its STRC preferred stock, signaling a push to make the Bitcoin-backed instrument more attractive to income-focused investors. The company proposes shifting STRC dividend payments from monthly to semi-monthly. This change would effectively split the current 11.50% annualized yield into two payments each month, offering more frequent cash flow to shareholders. The adjustment reflects growing demand for shorter-duration income streams, particularly as Bitcoin markets remain volatile. With BTC trading near $74,000, Strategy appears to be positioning STRC as a more responsive yield product for both institutional and retail investors seeking regular liquidity.
STRC's structure is designed to maintain a stable $100 par value through a variable dividend mechanism. When the share price dips below that level, the yield is increased to incentivize demand and support price stability. This dynamic rate-setting process — currently adjusted monthly — could become more reactive under a semi-monthly framework.
At the time of writing, the bitcoin price is dancing between $75,000 and $76,000.