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Strategy’s Record Weekly Bitcoin Buy Underscores Pivot to 11.5% Preferreds

A pivot to 11.5% perpetual preferreds concentrates funding, posing dividend sustainability risks.

Overview

  • Strategy purchased 22,337 BTC in the latest week, its largest weekly accumulation since November 2024, according to CryptoQuant.
  • STRC preferred issuance supplied roughly $1.18 billion that week versus about $396 million from common stock, with around $4 billion raised via STRC across two recent cycles.
  • Total holdings stand near 761,068 BTC as of March 18–19, with recent weekly buys frequently outpacing newly mined supply.
  • Management is exploring income strategies for its BTC, including lending coins, selling covered calls, and engaging in crypto repo markets.
  • Analysts warn the 11.5% STRC dividend relies on new capital rather than Bitcoin-generated cash flow, heightening risk if prices or investor appetite weaken.