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Business

Strategy Adds 13,927 Bitcoin for $1 Billion, Funded Entirely by Preferred Stock With Zero Dilution to Common Shareholders

Michael Saylor's company bought roughly 31 days of global mining output in a single week, paying $71,902 per coin through sales of its Stretch preferred stock without issuing a single common share.

By James Gray··2 min read
Strategy Adds 13,927 Bitcoin for $1 Billion, Funded Entirely by Preferred Stock With Zero Dilution to Common Shareholders

Key Points

  • Michael Saylor's company bought roughly 31 days of global mining output in a single week, paying $71,902 per coin through sales of its Stretch preferred stock without issuing a single common share.

Michael Saylor's Strategy added 13,927 bitcoin to its treasury over the past week at an average price of $71,902 per coin, spending approximately $1 billion in a single tranche that was funded entirely through sales of the company's preferred stock, Stretch. No common MSTR shares were issued.

The purchase brings Strategy's total holdings to 780,897 bitcoin, acquired across hundreds of transactions for a cumulative $59 billion at an average cost basis of roughly $75,577. At Monday's price of approximately $70,767, the stack is worth around $55.3 billion — meaning the company is sitting on an unrealised loss of nearly $4 billion against its aggregate purchase cost. That deficit hasn't slowed the buying; if anything, it has accelerated the creative financing behind it.

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Stretch, which trades under the ticker STRC, is a preferred stock with a $100 par value and a variable dividend rate currently set at 11.5% annually, paid monthly in cash. It launched in July 2025 and has delivered seven consecutive monthly dividend increases before stabilising at its current rate in April. For US federal income tax purposes, the distributions qualify as a non-taxable return of capital — a detail that has made STRC attractive to income-focused investors who would otherwise have no interest in a bitcoin proxy.

The mechanics matter. Strategy's previous bitcoin acquisitions relied heavily on convertible debt and at-the-market common share sales, both of which diluted MSTR shareholders. STRC changes the equation: it raises capital without expanding the common share count, which means each existing MSTR share represents a claim on more bitcoin, not less. The company reports a "BTC Yield" metric tracking exactly this — year-to-date, the figure stands at 5.6%, meaning each MSTR share's bitcoin backing has grown by that amount since January.

The sustainability question is straightforward arithmetic. Strategy needs bitcoin to appreciate by at least 2.05% annually to cover the STRC dividend obligations from capital gains alone. At current volatility, that threshold looks modest; in a prolonged bear market, it could become a constraint. The 11.5% annual dividend on what will eventually be billions in outstanding preferred stock is a real cash obligation — one that bitcoin's price must ultimately justify.

For context, 13,927 bitcoin represents roughly 31 days of global mining output at the current production rate of approximately 450 BTC per day. Strategy has dominated corporate bitcoin buying in 2026, absorbing supply at a pace that dwarfs every other public company combined. The firm held 762,000 bitcoin worth $57 billion as recently as March, meaning it has added nearly 19,000 coins in the span of weeks.

MSTR closed at $128.64 on Thursday. The stock has become a leveraged bet on bitcoin with a preferred-stock dividend layer bolted on top — a structure without precedent in public markets. Whether that structure is brilliant financial engineering or a fragile edifice that depends on perpetually rising bitcoin prices is the question that divides Wall Street opinion on the company.

Saylor, characteristically, is not hedging.

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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