What is Strategy (NASDAQ:MSTR) trying to do with its preferred stock STRC right now?

Strategy (NASDAQ:MSTR) has made restoring its preferred stock STRC to its US$100 par value its top priority. The company views this as the critical step needed to restart its Bitcoin (CRYPTO:BTC) acquisition and financing model. Until STRC trades at or near par, Strategy's ability to raise cheap capital for further Bitcoin purchases is constrained.

Why did Strategy (NASDAQ:MSTR) sell US$216 million worth of Bitcoin (CRYPTO:BTC)?

Strategy sold approximately US$216 million of Bitcoin (CRYPTO:BTC) to fund dividend payments on its STRC preferred stock. This is a notable shift — the company is known for accumulating Bitcoin, not selling it. The sale reflects the current pressure on Strategy to service its preferred stock obligations and stabilise STRC's price before resuming its standard Bitcoin acquisition playbook.

What is STRC and how does it fit into Strategy's (NASDAQ:MSTR) Bitcoin treasury model?

STRC is Strategy's (NASDAQ:MSTR) preferred stock, which sits at the core of its capital-raising engine. The company issues preferred stock and equity to raise cash, then uses that cash to buy Bitcoin (CRYPTO:BTC). When STRC trades below its US$100 par value, the cost of raising new capital increases, effectively stalling the whole model until the preferred stock is restored to par.

What is Cantor Fitzgerald's assessment of Strategy's (NASDAQ:MSTR) STRC restoration plan? What is Cantor Fi

Investment bank Cantor Fitzgerald outlined three levers Strategy (NASDAQ:MSTR) plans to use: increasing cash reserves for STRC dividend payments, extending the dividend coverage period, and repurchasing STRC shares when needed. Cantor expects that once STRC stabilises at par value, Strategy will be able to issue capital again at lower cost — which would support the MSTR common stock price and enable resumed Bitcoin (CRYPTO:BTC) buying.

How does STRC trading below par value affect Strategy's (NASDAQ:MSTR) common stock?

When STRC trades below its US$100 par value, it signals stress in Strategy's (NASDAQ:MSTR) preferred stock structure, which raises the cost of issuing new capital. Higher financing costs compress the economics of Strategy's Bitcoin (CRYPTO:BTC) accumulation model, which is the primary driver of MSTR's valuation premium over the value of its Bitcoin holdings. Restoring STRC to par is therefore directly linked to the health of the common stock.

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Strategy restores STRC par value for Bitcoin buys

Written by Heidi Cuthbert Published Jul 6, 2026, 2:06 PM

US-listed company Strategy (NASDAQ:MSTR) has identified the restoration of its preferred stock STRC to its US$100 par value as a top priority, viewing it as the critical step required to restart its Bitcoin (CRYPTO:BTC) acquisition and financing model.
Investment bank Cantor Fitzgerald stated that Strategy's management intends to drive STRC back to par value through a combination of increasing cash reserves designated for dividend payments, extending the dividend coverage period, and repurchasing STRC shares when appropriate.
Strategy has announced the sale of approximately US$216 million worth of Bitcoin (CRYPTO:BTC) to fund dividend payments on its STRC preferred stock.

The preferred stock structure underpins Strategy's broader capital engine, which the company uses to raise financing for continued Bitcoin (CRYPTO:BTC) accumulation.

Cantor expects that once STRC is restored to par value and achieves price stability, Strategy will be positioned to issue capital again at a lower cost of financing.

A reduction in the cost of capital is expected to support Strategy's (NASDAQ:MSTR) common stock price and facilitate additional share issuances as part of its ongoing Bitcoin treasury strategy.

The ability to issue capital at lower cost would allow Strategy to resume executing its core model of acquiring Bitcoin (CRYPTO:BTC) at scale using proceeds from preferred stock and equity issuances.

The STRC restoration effort reflects the company's assessment that the preferred stock's current trading level represents a constraint on its ability to continue expanding its Bitcoin (CRYPTO:BTC) holdings efficiently.

At the time of reporting, Bitcoin price was $61,403.52.