Strategy buys 24,869 bitcoin for $2 billion using preferred stock

Strategy Inc. acquired 24,869 bitcoin for approximately $2.01 billion in the week ending May 17, according to a company filing. The purchase, made at an average price of $80,985 per coin, lifts the company’s total holdings to 843,738 BTC, representing over 4% of bitcoin’s total 21 million supply cap.

“Bitcoin per share (BPS) is our True North,” Phong Le, president and CEO of the company, said in a recent post on X, highlighting the company's focus on increasing its bitcoin holdings relative to its share count. “Every day, Strategy uses multivariate models to optimize capital, equity, debt, and credit decisions to maximize annual BTC Yield (growth in BPS).”

The acquisition brings Strategy’s aggregate bitcoin investment to about $64 billion, with an average cost basis of $75,700 per coin. This latest purchase was funded almost entirely through the issuance of the company's high-yield STRC perpetual preferred shares, which accounted for $1.95 billion of the total, supplemented by $83.7 million from common stock sales.

The move solidifies Strategy’s position as the largest corporate holder of bitcoin and a significant, recurring source of demand in the market. However, it also draws further attention to the sustainability of its financing strategy, which has become increasingly reliant on expensive preferred equity as cheaper forms of capital have become less accessible.

The Preferred-Stock Engine Driving Bitcoin's Mid-Month Rally

The financing mechanism behind the purchase has become a predictable driver of bitcoin market dynamics. According to research from K33, Strategy’s STRC preferred stock creates a mechanical loop of demand. Investors seeking the stock's dividend must own the shares by the 15th of the month, which drives up trading volume and pushes the stock price toward its par value.

Once STRC is at or above par, Strategy can issue new shares and use the proceeds for its bitcoin acquisitions. This pattern has been linked to recurring bitcoin price strength around the middle of each month. Data shows this cycle has accelerated in 2026, with purchases funded by STRC climbing from 4,467 BTC in January to nearly 47,000 BTC in April, according to K33.

A Strategy Under Scrutiny

While effective for accumulation, this reliance on preferred stock comes at a high cost. The annualized yield on STRC has climbed to 11.5%, a sharp increase from the convertible debt that funded earlier purchases. According to analysis from Delphi Digital, each $1 billion raised via STRC creates about $115 million in annual dividend obligations.

Delphi expects these dividends will be serviced by issuing common stock, creating a form of delayed dilution. While the initial bitcoin purchase boosts the bitcoin-per-share metric, the subsequent stock issuance to pay dividends gradually erodes that gain. The research firm projects that this effect could cause net bitcoin-per-share growth to turn negative once the company nears its $28.3 billion authorization cap for the preferred stock.

The strategy also faces risks in a potential market downturn. Blockchain research firm House of Chimera warned that falling bitcoin prices could force Strategy to offer even higher yields to attract investors, creating a negative feedback loop. In a severe scenario, the firm could be forced to sell bitcoin to meet its dividend payments, a move that would add significant pressure to the spot market.

For now, the STRC financing machine continues to convert yield demand into spot bitcoin purchases, providing a consistent bid in the market. Yet, as the dividend burden grows with each new issuance, the long-term stability of this accumulation strategy remains a central question for both shareholders and the broader crypto market.

This article is for informational purposes only and does not constitute investment advice.