How Michael Saylor Turned Preferred Stock Into Jet Fuel For Buying Bitcoin

Key Points:

• Strategy has become the world's largest institutional bitcoin holder, surpassing BlackRock, with total holdings of 815,061 BTC valued at around $65 billion, funded primarily through issuing high-yield perpetual preferred stock known as "Stretch" (STRC).
• STRC, launched in July 2025 with a 9% coupon and currently yielding 11.5%, has grown to an $8.5 billion market cap, becoming the largest preferred equity by market capitalization and a key component of Strategy's capital-raising efforts.
• The company raises dividends for STRC holders mainly by issuing new shares rather than selling bitcoin, a strategy that supports ongoing bitcoin purchases while managing dilution and liquidity risks.
• STRC has attracted significant interest from retail investors, financial advisors, mutual funds, ETFs, and other bitcoin treasury companies, with some viewing it as a durable income vehicle despite inherent risks linked to bitcoin price volatility and dividend sustainability.
• Strategy plans to increase STRC's appeal by proposing semi-monthly dividend payments starting July 2026, aiming to enhance its attractiveness as a steady income product amid a challenging bitcoin market environment.