Michael Saylor says issuing Strategy's STRC preferred stock at just 2.3% of the company's Bitcoin holdings keeps the firm a permanent net buyer of Bitcoin, even while it sells some coins to cover dividends. Strategy now holds roughly 842,000 BTC, and the model depends on Bitcoin gaining more than 2.3% a year.
Michael Saylor says Strategy can keep buying Bitcoin indefinitely, even as it sells some of its holdings. The Strategy executive chairman argues that issuing the company's Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC, at a rate equal to just 2.3% of Strategy's Bitcoin holdings turns the firm into a permanent net buyer of BTC.
Under Saylor's math, the capital raised from issuing new preferred shares more than offsets the Bitcoin the company sells to cover STRC dividends. As a result, Strategy ends up holding more Bitcoin than it started with, as long as Bitcoin appreciates at least 2.3% annually.
STRC dividends fund fresh Bitcoin purchases
STRC carries a variable dividend that adjusts monthly based on market conditions and Bitcoin's performance. The rate climbed to 12.00% as of July 2026, making the instrument attractive to income-focused investors who want crypto exposure without the full price swings.
Strategy recently sold around 1,638 BTC to manage capital and dividend obligations. But because STRC issuance stays at or below the 2.3% threshold, the new Bitcoin the company buys with the proceeds exceeds what it sells, so the net effect stays positive.
Strategy's holdings near 842,000 BTC
Strategy now holds approximately 842,000 BTC as of early August 2026. Its USD reserve is approaching $4 billion, and the stack represents roughly 4% of Bitcoin's total supply that will ever exist.
STRC itself trades around its $100 par value. Prediction markets tracked by Crypto Briefing put the odds of STRC reaching $100 by December 31 at 53.5%. Odds of that happening sooner, by September 30, sit at 32.5%.
The model's math depends on Bitcoin's price
Saylor's framework rests on Bitcoin gaining more than 2.3% a year, so a prolonged bear market could stress it while Strategy still owes dividends on STRC. Demand for the preferred stock could also dry up if risk appetite shifts or competing yield instruments emerge, which would stall the buying machine without fresh issuance. For common shareholders, the metric to watch is dilution: billions in preferred shares outstanding sit above common equity in the capital structure.
Sources: Crypto Briefing, Crypto Briefing
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