Strategy’s STRC Preferred Stock Hovers Near $100 as Bitcoin-Backed Financing Model Proves Resilient in 2026

• How Does Strategy’s STRC Preferred Stock Work?
• Why Did Strategy Acquire 1,287 BTC in Late December 2025?
• What Are the Risks of Strategy’s Bitcoin-Backed Model?
• How Does STRC’s Trading Activity Reflect Investor Sentiment?
• What’s Next for Strategy’s Capital Strategy?
• FAQs: Strategy’s STRC and Bitcoin Financing

Strategy’s STRC preferred shares are trading around $100, buoyed by its innovative Bitcoin-collateralized financing model. The company’s recent BTC acquisitions and dividend yield of 11% highlight its unique approach to leveraging cryptocurrency for shareholder value. With $2.25 billion in USD reserves and 673,783 BTC, Strategy’s financials reveal a high-conviction bet on Bitcoin’s long-term appreciation—even as it navigates dividend obligations. Below, we break down the mechanics, risks, and market reactions to this unconventional strategy.

How Does Strategy’s STRC Preferred Stock Work?

STRC, Strategy’s preferred equity instrument, operates as a hybrid between traditional dividends and bitcoin exposure. The company sells STRC shares to raise capital, using proceeds to buy Bitcoin while committing to fixed annual dividends (currently 11%). For example, a $100,000 STRC sale funds the purchase of 1 BTC at $100,000, creating an $11,000/year dividend obligation. If Bitcoin hits $1 million in five years, Strategy nets $845,000 after dividends—a trade-off that assumes BTC’s growth outpaces the dividend cost. Data from TradingView shows STRC’s 30-day volatility at 12%, with liquidity supported by $51.3 million in average daily volume.

Why Did Strategy Acquire 1,287 BTC in Late December 2025?

Between December 29–31, 2025, Strategy added 1,287 BTC to its reserves (now totaling 673,783 BTC), alongside boosting USD holdings by $62 million to $2.25 billion. This MOVE coincided with STRC’s 11.01% effective yield, suggesting confidence in Bitcoin’s upside despite market fluctuations. Notably, no preferred shares (STRC, STRF, STRK, or STRD) were sold during this period, per company filings. Instead, Strategy offloaded 1.26 million Class A MSTR common shares, raising $195.9 million—indicating a preference for Bitcoin-focused financing over equity dilution.

What Are the Risks of Strategy’s Bitcoin-Backed Model?

The model hinges on Bitcoin outperforming the 11% dividend rate. If BTC stagnates or declines, dividend payouts could strain Strategy’s balance sheet. However, CEO Michael Saylor has publicly framed this as a “low-cost hedge” against fiat inflation. CoinMarketCap data shows Bitcoin’s annualized returns have averaged ~60% over five years, but past performance isn’t indicative of future results. Critics argue the structure resembles a Leveraged bet, though Strategy’s $2.95 billion notional liquidity provides a buffer.

How Does STRC’s Trading Activity Reflect Investor Sentiment?

STRC last traded at par in early November 2025, triggering $100 million in sales over four trading days. Current metrics reveal a 6.2x BTC correlation score, with next dividend dates set for January 15 (record) and January 31 (payment). The BTCC exchange reported heightened STRC derivatives activity in Q4 2025, likely tied to Bitcoin’s 28% quarterly rally. “Investors see STRC as a yield play with optionality on BTC,” noted a BTCC analyst, though they cautioned about interest rate sensitivity.

What’s Next for Strategy’s Capital Strategy?

Strategy retains $11.4 billion in untapped common stock capacity, per January 2026 disclosures. With 735,000 MSTR shares sold in early January (raising $116.3 million), the company seems to prioritize Bitcoin accumulation over equity raises. Market watchers anticipate updated guidance post-January 31 dividend payments, especially if BTC volatility persists. This article does not constitute investment advice.

FAQs: Strategy’s STRC and Bitcoin Financing

How does STRC’s dividend yield compare to traditional bonds?

STRC’s 11% yield exceeds the 10-year Treasury’s ~4.5% but carries Bitcoin-specific risks. It’s more akin to high-yield corporates.

Can retail investors buy STRC preferred shares?

Yes, STRC trades publicly, though minimum lots and brokerage restrictions may apply. Check platforms like BTCC for availability.

What happens if Bitcoin crashes below STRC’s purchase price?

Strategy must still pay dividends, potentially forcing asset sales. Their $2.25 billion USD reserve acts as a backstop.