Strategy’s Preferred Shares Near Milestone, Eyes Bitcoin Expansion

Strategy’s high-profile preferred stock, STRC, is approaching a pivotal threshold crucial for the company’s expansion of its Bitcoin holdings. The prospect of reclaiming the $100 mark bolsters Strategy’s ability to generate capital without issuing new common shares, offering significant strategic flexibility.

The Significance of the $100 Benchmark

STRC trades as a preferred stock offering an annualized variable dividend of 12% at the $100 price level. Strategy aims to maintain STRC near this threshold, having previously declared its intention not to issue new STRC shares below face value. As a result, share buybacks have been prioritized while STRC remains under $100.

Should STRC securely surpass $100, the landscape may shift. Strategy could then sell STRC again through a direct market sale program, which, as of October 4, harbors approximately $17.5 billion in available capacity. The funds can serve general corporate purposes, including potential Bitcoin acquisitions.

“Surpassing the $100 mark renders STRC a more appealing capital source under current policies,” Strategy reiterated.

Recovering from June’s Significant Drop

STRC traded around $100 in May but faced substantial selling pressure in June. Once exceeding $95 mid-June, STRC plummeted to an intra-day low of $71.25 on June 26.

Post-decline, STRC recovered to mid-$80s and remained stable through July. It climbed past $90 at August’s start and continued the ascent with higher lows and peaks over August and September. By September 18 and September 29, STRC hit $98.51 and $99.56 respectively. The latest trade on October 2 marked $99.41, a striking near 40% increase from the June bottom.

Not a Direct Trigger for Bitcoin Purchases

Achieving the $100 price does not automatically trigger Bitcoin purchases, but it makes STRC a more favorable financing tool under Strategy’s policies. Deciding when and how to utilize this capital remains a separate consideration.

Nevertheless, a historical linkage between STRC and large-scale Bitcoin acquisitions exists. Following the initial STRC issuance in July 2025, Strategy netted $2.47 billion, immediately investing approximately $2.46 billion to purchase 21,021 $BTC days later.

“From the initial $2.47 billion net proceeds of STRC in July 2025, Strategy promptly announced the acquisition of 21,021 $BTC,” a company statement highlighted.

Strategy, synonymous with its leader Michael Saylor, is renowned for substantial Bitcoin holdings on its balance sheet. Accordingly, STRC’s movement towards $100 is carefully monitored for both share performance and the company’s capital flexibility for further crypto asset acquisitions.