CryptoSlate
Strategy's (formerly MicroStrategy) perpetual preferred stock STRC has become the central funding engine for the company's Bitcoin accumulation, and the mechanism is now dictating the rhythm of the spot market. K33 Research tied the recurring mid-month strength in BTC to STRC's dividend calendar: investors must own the shares by the 15th to qualify for the month-end payout, which creates a predictable demand window ahead of each ex-dividend date. Once STRC trades at or above its $100 par value, Strategy can issue new shares through its at-the-market program and convert the proceeds into spot Bitcoin. Data from STRC.live shows the loop is live this week — STRC has returned to par, giving Strategy the room to fund purchases of more than 5,000 BTC before Friday's deadline. The pattern has accelerated: K33's figures show STRC-funded buys climbed from 4,467 BTC in January to 22,131 BTC in March and roughly 46,872 BTC in April.
Why it matters
The shift is structural. For most of its accumulation history, Strategy funded purchases with common stock issuance and low-coupon convertible debt — both attractive while MSTR traded at a wide premium to NAV. Delphi Digital now estimates that premium at about 1.24x enterprise-value-based net asset value, which meaningfully reduces the Bitcoin-per-share benefit of issuing new common stock. With $8.2 billion of convertibles coming due starting in September 2027, STRC has effectively become the only growth engine left in the capital stack. Vetle Lunde, head of research at K33, called the setup a mechanical source of demand — yield-focused buyers lift STRC back to par, and Strategy converts that into spot purchases. The company is also proposing a move to twice-monthly dividend distributions, which would shorten the cycle and create more frequent issuance windows.
Market impact
The trade is increasingly expensive on both ends. STRC's annualized yield has climbed to 11.5%, far above the cost of Strategy's earlier financing. Delphi estimates about 97% of every $1 billion raised through STRC can be deployed into Bitcoin at issuance, but each $1 billion also creates roughly $115 million in annual dividend obligations — payments Strategy is expected to service through additional common stock issuance. The model shows Bitcoin-per-share growth could exceed 7% in year one of the program but fade to roughly 3% by year three, and turn negative near the $28.3 billion STRC authorization cap.
Frequently asked questions
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What is Strategy's STRC and how does it fund Bitcoin purchases?
STRC is Strategy's perpetual preferred stock. Investors must own shares by the 15th to qualify for the month-end dividend, which drives demand that pushes the stock back to its $100 par value. Once at par, Strategy issues new shares through an at-the-market program and uses the proceeds to buy spot Bitcoin.
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How much Bitcoin has the STRC loop helped Strategy buy?
According to K33 Research, STRC-funded purchases climbed from 4,467 BTC in January to 22,131 BTC in March and roughly 46,872 BTC in April. STRC.live data showed the loop was active again this week, with STRC back at par and giving Strategy room to fund 5,000+ BTC ahead of Friday's ex-dividend deadline.
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Why is STRC more expensive than Strategy's earlier financing?
Preferred stock sits below senior debt and convertibles in the capital stack, so investors require more compensation. STRC's annualized yield has risen to 11.5%, compared with the low coupons on Strategy's earlier convertible deals. Each $1 billion raised through STRC also creates roughly $115 million in annual…
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What happens to the STRC loop in a Bitcoin bear market?
House of Chimera warned that the structure is fragile in a downturn. As BTC declines, STRC may need to raise its dividend to keep investor demand, increasing Strategy's cash obligations just as its holdings lose value. Under pessimistic assumptions, the firm estimated Strategy's $2.5 billion cash reserves could be…
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How does STRC issuance affect Bitcoin per share at Strategy?
Delphi Digital estimates about 97% of every $1 billion raised through STRC flows into Bitcoin at issuance, lifting Bitcoin-per-share at the point of sale. The model projects BPS growth above 7% in year one, fading to roughly 3% by year three and turning negative near the $28.3 billion STRC authorization cap as…
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