Strategy Plans $42B Equity Push to Supercharge Bitcoin Buying Plans

Strategy has unveiled an ambitious plan to raise up to $42 billion through a mix of common and preferred equity, reinforcing its long-term commitment to accumulating Bitcoin.

The initiative includes authorization to issue an additional $21 billion in common shares, alongside $21 billion in its variable-rate preferred stock (STRC) and $2.1 billion in convertible preferred shares (STRK). The move is designed to keep capital flowing into the firm’s aggressive Bitcoin acquisition strategy.

Investor appetite for STRC has been notable in recent weeks. The preferred instrument has already generated over $1.5 billion this month, aided by a boosted monthly dividend yield of 11.5%. At one point, STRC traded above its $100 par value—a key trigger that allows the company to issue more shares specifically to fund Bitcoin purchases. However, the stock has since dipped below that level for multiple consecutive sessions, slowing issuance momentum.

This evolving funding approach highlights Strategy’s pivot toward what it describes as “digital credit,” leaning more heavily on preferred equity rather than common stock. While this strategy opens new funding channels, it also introduces higher costs tied to dividend obligations.

Despite raising billions earlier in the month, Strategy’s Bitcoin buying pace cooled recently. The company disclosed a relatively modest purchase of 1,031 BTC for $76.6 million—its smallest acquisition in weeks—funded through common stock issuance.

Over the weekend, co-founder Michael Saylor hinted at a more measured accumulation phase, suggesting the company may be shifting from rapid buying to a steadier approach.

Strategy’s stock edged up 2% to $138, while Bitcoin traded near $71,420, recovering slightly amid easing geopolitical tensions following a temporary pause in U.S. military actions involving Donald Trump and Iran.

The firm now holds approximately 762,099 BTC—valued at over $54 billion—cementing its position as the largest corporate holder of Bitcoin. However, with an average acquisition cost of $75,694 per coin, Strategy is currently sitting on an unrealized loss of roughly $3.3 billion, underscoring the risks tied to its high-conviction strategy.