TYSONS CORNER, Virginia, May 14, 2026, 16:02 EDT
Strategy Inc jumped Thursday as bitcoin rallied, yet a fresh analyst note dragged attention back to the main concern: just how much longer its preferred-stock financing can fuel those bitcoin buys.
This is relevant now as Strategy wants shareholder signoff to shift STRC’s Variable Rate Series A Perpetual Stretch Preferred Stock to a twice-monthly dividend schedule. The change—detailed in the company’s proxy—would split payouts in half each month, without altering the overall amount.
STRC, a perpetual preferred stock, pays cash dividends with no set maturity date. According to Strategy, the annual dividend stands at 11.50%, and the payout rate shifts monthly, aiming to keep shares near the $100 par.
The board at Strategy is urging shareholders to back the amendment ahead of the annual meeting set for June 8. In a filing dated May 13, Chief Financial Officer Andrew Kang stated the proposal won’t alter “the economics” but is designed to “reduce reinvestment lag” and boost liquidity. SEC
MSTR climbed roughly 5.3% to $187.46. Bitcoin hovered around $81,430, marking a 2.3% gain. BlackRock’s iShares Bitcoin Trust advanced 2.3% as well, highlighting how Strategy faces competition not just from other bitcoin-treasury companies but also from more straightforward listed bitcoin products for investor capital.
Strategy’s most recent buy barely registers by its 2026 playbook. The company announced May 11 it picked up 535 bitcoin—about $43 million worth—from May 4 to May 10, paying an average of $80,340 each. Nearly all of that was covered by the sale of 231,324 common shares, with just $0.1 million tapped from STRC. That brought Strategy’s stash to 818,869 bitcoin.
Investors are zeroed in on how that funding mix shapes up. According to Delphi Digital, STRC’s issuance cap sits at roughly $28.3 billion—potentially a limit if Strategy can’t boost capacity or shift further toward selling common shares.
“Strategy will use STRC as its main accumulation vehicle as long as MSTR mNAV stays low,” said Delphi’s head of research, Ceteris, speaking with Cointelegraph. mNAV, or market net asset value, is a metric comparing a company’s market value to the value of its bitcoin holdings. On Thursday, Delphi pegged Strategy’s mNAV at 1.25 times. TradingView
Delphi’s Aatharv D, speaking with Cointelegraph, said the financials “do not read panicky.” Still, the report flagged a core challenge—a capped preferred-stock program just isn’t enough if bitcoin buying stays at the heart of the strategy. TradingView
Management takes a different stance. Strategy, in its Q1 update, reported that STRC brought in $5.58 billion so far this year through May 3. Executive Chairman Michael Saylor argued the planned semi-monthly dividend schedule might help bolster both liquidity and price stability for the product.
Strategy’s software operation hasn’t vanished, though the stock is overwhelmingly viewed as a bitcoin proxy. For the first quarter, the company posted an operating loss of $14.47 billion—almost all of that, $14.46 billion, tied to an unrealized hit on its digital assets. Revenue climbed 11.9% to $124.3 million.
The risk is clear enough. Strategy flags in its own commentary that bitcoin’s volatility, financing hurdles, and debt service all have the potential to shift results. In the KPI section, the company notes it might need to unload either common shares or bitcoin if certain instruments come due or get redeemed. That scenario would undercut its pitch to investors about bitcoin-per-share value.
Traders aren’t betting on a runaway rally just yet. On Kalshi, odds of bitcoin topping $100,000 before January 2027 sit at 46%. Over on Polymarket, the chance of hitting a fresh all-time high by Dec. 31, 2026, comes in at just 17%. For Strategy, those probabilities aren’t trivial: a stronger bitcoin price helps maintain the premium needed to tap capital markets, but if prices stall, raising money gets harder.
Among its peers, Japan’s Metaplanet reports a bitcoin stash of 40,177—well behind Strategy’s massive pile, yet it’s a clear sign the mimicry trade hasn’t gone away. Strategy continues to dominate the space, holding more bitcoin on its balance sheet than any other public company, and its capital structure has now become nearly as scrutinized as the cryptocurrency itself.
