Strategy expands $60 billion stock issuance for Bitcoin strategy shake-up

Strategy (formerly MicroStrategy) widened its at-the-market fundraising capacity on March 23, filing new programs for common stock and two preferred securities, bringing the company’s total active issuance capacity to over $60 billion.

The 8-K filing, which added fresh ATM lines while terminating one older program, signals a reconfiguration of the capital stack behind the firm’s Bitcoin treasury strategy.

Under the new program structure, Strategy can sell up to $21 billion of Class A common MSTR stock, up to $21 billion of STRC preferred stock, and up to $2.1 billion of STRK preferred stock through a broadened syndicate of sales agents.

The company added Moelis, A.G.P./Alliance Global Partners, and StoneX to the existing sales group under its omnibus sales agreement, according to the filing.

Meanwhile, Strategy intends to continue using its prior common-stock prospectus, which covered about $15.85 billion, and its prior STRC prospectus, which covered $4.2 billion, until those shares are sold. The prior STRK offering, which had covered about $20.34 billion, was terminated effective March 22.

Cumulatively, that leaves Strategy with about $64.15 billion of active issuance capacity across still-live common-stock and STRC programs, along with the new STRK line.

Notably, the company did not say it had raised that amount, and the 8-K repeatedly frames the securities as stock it “may issue and sell” over time.

Even so, the document is likely to be read as a financing map for the next phase of Strategy’s Bitcoin treasury plan.

The company has repeatedly used public market activity to expand its Bitcoin holdings, and changes to its capital stack are closely watched for what they signal about future buying capacity, dividend obligations, and dilution risk.

Strategy is the largest public holder of Bitcoin, holding 762,099 Bitcoin. Based on the company’s aggregate purchase cost of about $57.7 billion, the average acquisition price stands near $75,700 per Bitcoin.

Data from SaylorTracker showed the position is sitting on an unrealized loss of more than $3 billion.

STRC takes center stage as Strategy reshapes preferred stock mix

The clearest signal in the filing is the expanding role of STRC, the company’s Variable Rate Series A Perpetual Stretch preferred stock.

Strategy filed a certificate to increase the authorized STRC preferred shares from 70,435,353 to 282,556,565, an increase of 212,121,212 shares.

The treatment of STRK, by contrast, moved in the opposite direction. Strategy filed a certificate of decrease to reduce the authorized STRK preferred shares from 269,800,000 to 40,270,744, a reduction of 229,529,256 shares.

The divergence is notable because the two instruments occupy different positions in Strategy’s capital structure.

The March 23 filing identifies STRK as the company’s 8.00% Series A Perpetual Strike preferred stock, a convertible security with an initial conversion rate of 0.1000 shares of Class A common stock per STRK share, equivalent to an initial conversion price of $1,000 per MSTR share, subject to adjustment.

That embedded call option is unique among the company’s preferred share offerings of STRD, STRK, STRE, and STRC.

Interestingly, STRK had previously attracted investor attention because of that conversion feature. In July 2025, STRK briefly rallied above $129 per share, 29% above its $100 liquidation preference, on which the company pays an 8% dividend. It has since declined to $77 as of press time.

By cutting both the authorized share count and the size of the active STRK issuance line, Strategy reduced the scale of that channel relative to its pre-filing level.

STRC, meanwhile, has rapidly become the most liquid preferred stock on the market since its 2025 launch, with an average daily trading volume of approximately $295.9 million, according to data shared by chairman Michael Saylor.

That liquidity now exceeds the combined average daily trading volume of the seven closest competing preferred issues, including preferred shares from Boeing, KKR & Co., and Four Corners Property Trust.

The STRC product offers investors a variable dividend yield of 11.5%, and the instrument has already attracted institutional holders, including BlackRock’s iShares Preferred and Income Securities ETF, Anchorage, and asset management firm Strive.

Data from STRC.live indicates the program has financed the acquisition of over 50,000 BTC since inception.

Bitcoin analyst Adam Livingston argued the expanded STRC program carries more buying power than its headline figure suggests.

He explained that every $1 of STRC issuance, at current balance-sheet settings, requires roughly $1.94 of MSTR issuance to keep the company’s amplification ratio flat.

According to him, if STRC issuance runs at its recent pace of about $2 billion per month, the corresponding common-stock issuance needed to maintain that ratio would push Strategy’s combined BTC acquisition rate to nearly $5.9 billion per month.

Under that math, full deployment of the newly announced $21 billion STRC and $21 billion MSTR envelopes could finance the purchase of more than 450,000 BTC within roughly five to seven months, though the MSTR leg would likely act as a bottleneck on the pace of execution.

STRC dividend burden and the long-term capital question

However, the flexibility embedded in the expanded ATM programs carries a growing cost.

If the $21 billion STRC program were fully utilized, it would add roughly $2.4 billion in annual dividend obligations, according to The Block analyst Ivan Wu.

The company has set aside approximately $2.25 billion in USD reserves to fund these obligations, providing a buffer amid rising capital costs.

However, traditional credit analysts remain skeptical of the underlying mechanics.

Jeff Dorman, the chief investment officer of Arca, argued that while Strategy’s balance sheet appears safe when viewing assets against liabilities, it fails the most critical credit metric of interest coverage.

According to him, Strategy generates essentially zero earnings before interest and taxes, indicating it has no interest coverage.

Dorman wrote that if the company never sells Bitcoin, then the debt and preferred shares will eventually default.

On the other hand, if the company continues to sell more shares to fund the interest and dividends, then the common shares will be diluted. If the company sells the Bitcoin to fund its capital structure, the underlying asset will suffer.

He concluded: