Strategy on course to hit 1 million BTC this year — and STRC is the clearest reason why

MicroStrategy’s recent Bitcoin purchases, totaling 22,337 BTC for $1.57 billion, were largely funded by its variable-rate perpetual preferred stock, STRC. This has significantly increased STRC’s role in the company’s financing, shifting from a supporting instrument to a primary funding source. The company now sells common stock for momentum-driven capital and preferred stock for yield-seeking capital, converting both into Bitcoin. Analysts estimate that, at the current pace, MicroStrategy could add $40 billion of Bitcoin this year, potentially reaching 1 million BTC by year-end, controlling nearly 5% of the total Bitcoin supply. However, this strategy relies on maintaining a premium valuation for its equity and faces risks related to interest and dividend payments, potentially requiring Bitcoin sales or dividend cuts if Bitcoin’s price declines significantly.

(Source：CryptoSlate)