TL;DR
- Strategy bought Bitcoin for $1.28 billion in its latest transaction
- The company raised $377 million through the issuance of new preferred shares
- Michael Saylor declares the start of a "second century" after 100 Bitcoin purchases
- The strategy involving preferred shares and convertible bonds has financial consequences for existing shareholders
Saylor Declares 'New Century' for Bitcoin Strategy
Strategy's one hundred and first Bitcoin purchase is a fact. The company, formerly known as MicroStrategy, spent $1.28 billion on Bitcoin and simultaneously raised $377 million in fresh capital through the issuance of new preferred shares, according to Decrypt.
CEO Michael Saylor dramatically describes the milestone: Following the company's 100th Bitcoin purchase last month, this marks the beginning of what he calls a "second century" in the company's Bitcoin venture.
Saylor calls it the start of a "second century" – but critics point out that the financing model could become costly for ordinary shareholders.
Preferred Shares as a Financing Engine
Strategy's method for financing continuous Bitcoin purchases has become increasingly complex. The company utilizes a combination of convertible bonds and various classes of preferred shares to raise capital without directly issuing too many ordinary shares.
According to research material, since the inception of its Bitcoin strategy, the company has accumulated 720,737 BTC, purchased at an average cost of approximately $75,985 per coin. This accounts for over 3.4 percent of Bitcoin's total, fixed supply.
The various preferred share classes – including STRK (8 percent fixed dividend), STRF (10 percent fixed dividend), and the newer STRC (variable dividend, set at 11.50 percent annualized for March 2026) – are all designed to attract investors seeking exposure to Strategy's Bitcoin holdings without the full risk profile of ordinary shares.
CEO Phong Le stated in February 2026 that preferred shares are becoming a "vital pillar in the capital structure," and that the model aims to make the company less dependent on diluting existing shareholders through the re-issuance of ordinary shares.
Risk for Existing Shareholders
Despite the intention to limit dilution, the picture is more nuanced. Convertible bonds – which Strategy has also actively utilized – can be converted into ordinary shares if price conditions are met, which in practice can significantly increase the number of outstanding shares. According to available information, the company's diluted share count became significantly higher towards the end of 2025, causing concern among Wall Street analysts.
In the event of bankruptcy, bondholders will be prioritized first, then preferred shareholders ($100 per share plus any unpaid dividends), and finally ordinary shareholders – if there is anything left to distribute.
Analyst Mitchell Askew at Blockware has described preferred shares like STRK as 'fixed-income exposure to Bitcoin with unlimited options upside in the world's largest Bitcoin company,' according to research material. It is worth noting that this is an optimistic industry perspective.
Broader Trend: Companies Diversify Crypto Holdings
Strategy's model is no longer unique. A growing number of publicly traded companies are adopting similar financing strategies to acquire digital assets – but not always Bitcoin. Ethereum, stablecoins, and tokenized real assets are among the alternatives now being considered as part of corporate liquidity reserves.
A Deloitte survey from the second quarter of 2025 showed that 23 percent of North American CFOs in companies with over one billion dollars in revenue expect crypto to be used in treasury functions within two years. Among the very largest companies – with revenues over $10 billion – the proportion rose to 40 percent.
What Happens Next?
With the Bitcoin price at around $68,446 – and an extreme 'fear and greed' index of just 8 out of 100 – Strategy is buying in a market characterized by risk aversion. It is unclear how the company's financial model will withstand a prolonged bear market, especially with fixed dividend obligations to preferred shareholders.
Strategy's next moves will be closely watched by both supporters and critics. Saylor has promised a 'second century' – but the market is currently far from euphoric.
