MicroStrategy Preferred Stock Funds Tenfold Bitcoin Buys, Adds 34,164 BTC Week Ending April 19
MicroStrategy’s STRC preferred stock has funded about 77,000 BTC year-to-date—ten times the 8,000 BTC acquired by US spot ETFs. The firm bought 34,164 BTC for $2.54 billion in the week ending April 19, raising total holdings to 815,061 BTC and surpassing BlackRock’s iShares Bitcoin Trust.
1. STRC Funding Mechanism
MicroStrategy’s Variable Rate Series A perpetual preferred stock trades near $100 par and pays an 11.5% annual dividend, distributed monthly. When STRC issues at or above par, proceeds are channeled directly into Bitcoin purchases, enabling BTC accumulation without diluting common shares.
2. BTC Acquisition Highlights
STRC-funded purchases total roughly 77,000 BTC year-to-date—ten times the 8,000 BTC acquired by US spot ETFs—and included 34,164 BTC for $2.54 billion in the week ending April 19. These buys raise MicroStrategy’s total holdings to 815,061 BTC, overtaking BlackRock’s iShares Bitcoin Trust.
3. Strategic Implications and Outlook
The use of preferred equity demonstrates a yield-focused alternative to passive fund demand, significantly outpacing ETF flows. Projections suggest MicroStrategy could exceed 1 million BTC by late 2026 if issuance maintains its current pace, reinforcing its position as the largest corporate Bitcoin holder.