Strategy Inc. Buys $2.54 Billion in Bitcoin Using High‑Yield Preferred Shares

Overview

• An SEC filing detailed a $2.54 billion Bitcoin purchase primarily financed by $2.18 billion of Stretch (STRC) perpetual preferred shares, marking the company’s largest weekly buy since November 2024.
• Stretch is a variable‑rate preferred stock designed to trade near its $100 par through dividend tweaks, and the company has proposed switching payouts to twice a month to smooth price drops around record dates.
• Strategy now holds roughly $61 billion in Bitcoin, and its shares jumped almost 30% last week as the cryptocurrency rallied to a two‑month high.
• The preferred‑funding model reduces dilution for common shareholders but adds sizable fixed dividend obligations that could strain cash needs if Bitcoin underperforms or investor demand for STRC cools.
• The company had long raised cash through at‑the‑market common stock sales and is now targeting income‑seeking investors with STRC to keep buying Bitcoin without deep discounts on new equity.