Key Takeaways:
Strategy’s perpetual preferred stock (STRC) returned to its $100 par value on Friday, a key level that allows the company to resume share sales and restart the financing engine for its Bitcoin (BTC) acquisition strategy. The move positions Executive Chairman Michael Saylor to potentially add to the company’s 818,334 BTC holdings.
“You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend,” Saylor said during the company’s Q1 2026 earnings call, outlining the circular financing strategy that relies on the preferred stock issuance.
The return to par value follows a quiet period for the company’s financing arms. A recent SEC filing showed zero sales across all four of its preferred stock classes between April 27 and May 3, a sharp contrast to the preceding weeks when it raised $2.18 billion, primarily through preferred shares, to fund a $2.54 billion Bitcoin purchase. During the pause, the company sold $82 million in common stock but did not deploy the capital into Bitcoin.
The financing pause coincided with a volatile quarter for Strategy. The company reported a net loss of $12.54 billion for Q1 2026, driven by a $14.46 billion unrealized loss on its digital asset holdings as Bitcoin’s price fell during the period. Still, the core software business saw revenue rise 11.9% from a year ago to $124.3 million, showing its underlying operations remain stable. As of May 3, the company’s Bitcoin was acquired at an average price of $75,537 per coin.
Strategy’s preferred stock is becoming a significant part of its narrative, with its STRC series growing to an $8.5 billion market value in just nine months, making it the world’s largest preferred stock. The instrument, which currently carries an 11.50% annualized dividend, is also finding a foothold outside the company’s own treasury. At Strategy World 2026, Prevalon Energy and Anchorage Digital both disclosed they had allocated portions of their corporate treasuries to STRC.
The development suggests a broader institutional appetite for Strategy’s financing products, a view supported by analyst commentary. Canaccord Genuity recently raised its price target on the common stock to $224 from $185, citing the accretive nature of the preferred share structure that funds Bitcoin buys without diluting common shareholders. The consensus of 18 analysts remains a “Strong Buy” with an average price target of $360.81.
With the STRC financing window open again, the path is clear for Strategy to increase its Bitcoin treasury. The move allows the company to issue new shares and raise capital, reinforcing its primary goal of Bitcoin accumulation while providing a potential boost to investor confidence in the broader market.
This article is for informational purposes only and does not constitute investment advice.
