Strategy and Strive are weighing how much of their capital to spend on bitcoin and how much on dividends for their preferred stock. The model has been a major funding source: perpetual preferred shares have financed about 136,000 bitcoin, according to Fidelity Digital Assets, which estimates the bitcoin-focused preferred market at about $12 billion.
The strain comes from the payouts. Strategy has five preferred classes outstanding, led by STRC, which pays a variable dividend of about 12% and raised $7.5 billion in 2026 through late July. In its latest weekly update, Strategy spent $193 million repurchasing STRC and bought 267 bitcoin, and it raised its preferred repurchase authorization to $3 billion. It has also sold some bitcoin to fund preferred dividends.
When preferred shares trade below par, new issuance becomes less attractive and buybacks become the better use of cash. STRC briefly fell into the $70 range in late June. Strive, which issues its own SATA preferred, faces the same logic on a smaller scale.
The contrast with spot bitcoin ETFs is clear. They hold about $106 billion after roughly $57 billion in cumulative net inflows, and they carry no dividend obligations. As bitcoin trades below $80,000, the question is how long preferred-funded buying can continue at the same pace. Dividend obligations compete with bitcoin purchases for the same capital. This is news, not investment advice.
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Sources:
- Traders Union: Strategy, Strive preferred stock model tests sustainability of bitcoin buying
- Bitcoin Magazine: Bitcoin Treasury Strive Debuts New Preferred Stock
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