Strategy’s STRC preferred stock has become a key engine for Bitcoin accumulation, enabling billions in capital raising while targeting a stable $100 share price through variable dividends.
The structure has already supported more than $3.5 billion in Bitcoin purchases and attracted institutional demand with yields around 11.5%, far above traditional fixed-income alternatives.
“As long as preferreds remain anchored near par… the flywheel drives ongoing bitcoin demand,”
Said NYDIG’s Greg Cipolaro.
STRC works by adjusting its dividend to keep shares near $100, allowing Strategy to issue new stock at par and reinvest proceeds into Bitcoin, creating a feedback loop tied to market confidence.
However, analysts say the main risks are not about the company’s ability to pay dividends but about governance and investor positioning, as Strategy can cut payouts and let dividends accrue without default.
This flexibility means that in a downturn, the company can avoid selling Bitcoin by reducing dividends, shifting the financial impact onto investors through falling share prices.
If Bitcoin declines or capital markets tighten, STRC could drop below its $100 anchor, breaking the issuance model and leaving investors exposed to losses on what many viewed as a stable, income-generating asset.
At the time of reporting, Bitcoin price was $67,917.87.