MSTR Leverages STRC to Amplify Bitcoin Exposure as Preferred Stock Hits $100

Lockridge Okoth

Mon, January 5, 2026 astatine 1:22 AM CST 3 min read

MicroStrategy’s preferred stock strategy is drafting caller attraction this week arsenic STRC erstwhile again approaches the $100 mark.

The determination revives memories of aboriginal November erstwhile the banal held par for 4 trading days and generated astir $100 cardinal successful ATM sales.

Investors and analysts are intimately watching arsenic the Strategy leverages its STRC preferreds to accumulate Bitcoin. This strategy could make important gains for shareholders portion maintaining minimal communal stock dilution.

“If this BTC terms enactment holds, $STRC volition apt beryllium bumping up against $100 for the adjacent 9 trading days. Last clip $STRC deed par was aboriginal November for astir 4 trading days. Resulted successful ~ $100M successful ATM sales. Amplified Bitcoin is acceptable to roar,” wrote crypto strategist Jeff Walton, highlighting the value of the existent terms action.

His comments bespeak the imaginable for repeated ATM superior raises astatine favorable premiums, providing MicroStrategy with further firepower to turn its Bitcoin holdings.

The STRC mechanics is efficaciously a leveraged Bitcoin play. Shareholders payment from BTC appreciation portion vulnerability is managed done structured preferred issuance.

With STRC astatine $100, MicroStrategy appears positioned to repetition the occurrence of aboriginal November’s ATM. This could fortify its Bitcoin equilibrium expanse and support capitalist interest, indicating a steadfast bullish stance.

“Strategy sells $100K of STRC, yielding 11% and buys 1 BTC astatine $100K. It present has an yearly dividend work of $11,000. Five years pass; Bitcoin rises to $ 1 million. MSTR present holds $1 cardinal of BTC, but has paid $ 55,000 to work the STRC dividend. That's an $845K summation to MSTR shareholders ($900K superior summation – $55K of dividends = $845K),” explained Mark Harvey, a crypto concern analyst.

Harvey emphasizes that this strategy allows MicroStrategy to turn its Bitcoin holdings with minimal common-share dilution. At the aforesaid time, it rewards shareholders if BTC outperforms the 11% dividend rate.

Meanwhile, Jeff Dorman, CEO of Arca, cautioned that investors whitethorn beryllium focusing connected the incorrect risks, remarks that travel amidst MSCI exclusion fears.

“People are disquieted astir the incorrect MSTR risk—getting delisted by MSCI—not a large woody (marginally atrocious for stock, irrelevant for $BTC). BTC crashing—irrelevant for MSTR (they volition ne'er beryllium a forced seller. 2+ years of currency & nary covenants forcing sales). The biggest hazard is really BTC screaming higher, and MSTR not budging,” wrote Dorman.