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Strategy Shifts Bitcoin Funding to Preferred Stock as STRC Returns to Par

The company is pivoting to its $100-par preferred shares to fund further bitcoin buys with less dilution.

Overview

  • CEO Phong Le said Strategy will transition from issuing common equity to perpetual preferred capital, highlighting Stretch (STRC) as the key funding vehicle.
  • STRC reclaimed its $100 par value for the first time since mid-January, unlocking at-the-market issuance and offering an 11.25% dividend reset monthly to anchor trading near par.
  • Strategy disclosed holdings of 714,644 bitcoin acquired for about $54.35 billion, including 1,142 BTC purchased between February 2 and 8 for roughly $90 million.
  • At recent prices the bitcoin position is underwater with an estimated multi‑billion unrealized loss, and the company reported a Q4 net loss of about $12.4 billion under fair‑value accounting.
  • MSTR shares fell roughly 5% to near $126 as bitcoin hovered around the high‑$60,000s, and Michael Saylor reiterated plans to keep buying and to roll debt rather than sell holdings.