Michael Saylor’s Strategy Deploys $1B Bitcoin Buy Using STRC Plans, Nears ETF Giant BlackRock

Strategy doubled down on its aggressive Bitcoin accumulation plans last week, deploying $1 billion to expand its already massive holdings—without tapping common equity markets.

The firm, led by Michael Saylor, revealed it added roughly 14,000 BTC, pushing its total stash to nearly 781,000 Bitcoin. At current prices near $70,900, that hoard is valued at over $55 billion, reinforcing Strategy’s position as one of the largest corporate holders of the asset.

What makes this latest move stand out is how it was financed. Rather than issuing additional common shares—which have struggled in recent months—the company leaned entirely on its high-yield preferred stock offering, STRC. The instrument, currently delivering around 11.5% in monthly dividends, has quickly become central to Strategy’s evolving funding model.

This approach appears to be addressing a key concern among investors: dilution. With its stock price having dropped sharply over the past six months, Strategy is now proving it can continue scaling its Bitcoin exposure without putting further pressure on common shareholders.

The buying spree also places Strategy within striking distance of BlackRock’s spot Bitcoin ETF, which holds an estimated 790,000 BTC. If ETF inflows remain flat, Strategy would need to acquire roughly 9,000 more Bitcoin to surpass the Wall Street giant.

Since launching STRC last year, the company has raised approximately $3.55 billion through the product, surpassing its initial public offering size. Designed to trade near its $100 par value, STRC has not only fueled Strategy’s acquisitions but also started attracting interest from other Bitcoin-focused firms.

However, the strategy comes with obligations. The company now faces around $1.2 billion in annual dividend payments tied to its preferred shares. To mitigate concerns about sustainability, Strategy has previously built a $2.25 billion cash buffer.

Saylor has emphasized that the company’s long-term model hinges on Bitcoin outperforming its cost of capital. He recently noted that Strategy’s annual return requirement sits at roughly 2.05% relative to its Bitcoin holdings—suggesting that as long as Bitcoin appreciates beyond that threshold, the firm can sustain its dividend commitments without issuing new common stock.

Despite the ambitious accumulation plans, analysts have begun tempering expectations. TD Cowen recently lowered its price target for Strategy, citing a more conservative outlook for Bitcoin in the near term, while still maintaining a bullish stance overall.

As Strategy continues refining its funding model, its latest move signals a clear shift: Bitcoin accumulation is no longer just about buying more—it’s about how efficiently those plans can be executed without sacrificing shareholder value.