On Thursday, the trading volume of Strategy’s perpetual preferred stock, STRC, reached a new high of $1.5 billion. STRC is the principal instrument via which Strategy plans to finance its Bitcoin acquisitions in 2026.
Volume hits record high. Michael Saylor, chairman, mentioned Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, which has $1.53 billion of liquidity. Without diluting ordinary shares, Stretch allows investors to receive an 11.5% dividend.
Perpetual Preferred Stock Gains Traction
The STRC.live tracker indicates that based on Thursday’s performance, the firm has the potential to generate $735.4 million, which could be used to buy 9,066 Bitcoin (BTC). The money that Stretch raises may or may not go toward a Bitcoin purchase by Strategy.
Strategy has been buying more Bitcoin than normal, with 56,770 bought since April and 101,147 bought since March. This is in contrast to February, when the pace of purchases was slower than usual. During the current bad market, when it has become more difficult to raise capital via senior convertible notes and at-the-market equity issues, perpetual preferred stocks have become a popular mechanism for Bitcoin treasuries to buy additional Bitcoin.
The goal of Strategy’s Q1 earnings call, which took place on May 5, was to have Stretch become the “biggest credit instrument in the world,” as stated by Saylor. This strategy has been replicated by other Bitcoin treasuries.
In contrast to Strategy’s Stretch, which only distributed dividends once a month, Strive has announced that, starting on June 16, investors in its Variable Rate Series A Perpetual Preferred Stock (SATA) would collect dividends everyday. Recently, Metaplanet, headquartered in Tokyo, has also used perpetual preferred stocks like MARS and MERCURY to generate funds for Bitcoin acquisitions.
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