Michael Saylor, executive chairman of Strategy, revealed that issuing the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC, at just 2.3% of its Bitcoin holdings transforms Strategy into a permanent net buyer of BTC. Strategy now holds approximately 842,000 BTC, representing roughly 4% of Bitcoin’s total supply, with a USD reserve approaching $4 billion. The mechanism works as long as Bitcoin appreciates by at least 2.3% annually, as new STRC issuances generate enough capital to offset BTC sales needed to cover the 12% dividend payments. Risks for investors include a prolonged bear market, potential market saturation for STRC issuances, and dilution of common shareholders.
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