đ¨ Strategyâs Achillesâ heel?
#K33 questions the preferred stock model #STRC and its impact on #bitcoin reserves
A new report from research and brokerage firm K33, authored by research director Vetle Lunde, scrutinizes #strategy Inc.âs financing strategy and use of its STRC preferred stock.
Current holdings vs. hypothetical scenario: As of October 12, 2026, Strategy held 848,250 #BTC . According to K33âs calculations, if the company had largely avoided using STRC preferred stock to finance its purchases this year, its alternative balance would have stood at 843,303 BTC.
Dividend costs surge: Strategyâs annual preferred dividend obligations are estimated at $1.56 billion (up from around $830 million at the start of the year), with STRCâs expansion accounting for about $725 million. At an estimated price of $83,000 per bitcoin, these annual costs amount to approximately 8,740 BTC.
The financing model dilemma: Although preferred stock helped the company acquire nearly 100,000 BTC in the first half of the year, Lunde questioned the approach, stating: âWas the preferred stock model a mistake? We believe so,â noting that issuing common stock would have been more efficient given the high cost of the coupons (12% on STRC versus a 4% return on cash reserves).
Reserve protection and recent moves: Strategyâs dollar reserve provides a protective buffer that would cover about 42 months of dividends, mitigating the risk of Bitcoin liquidations. In recent weeks, the company has made massive STRC buybacks (which closed at $99.90 on October 13) and proposed switching to daily dividend payments, pending shareholder approval.
$BTC
$MSTRB
$MSTR
#K33 questions the preferred stock model #STRC and its impact on #bitcoin reserves
A new report from research and brokerage firm K33, authored by research director Vetle Lunde, scrutinizes #strategy Inc.âs financing strategy and use of its STRC preferred stock.
Current holdings vs. hypothetical scenario: As of October 12, 2026, Strategy held 848,250 #BTC . According to K33âs calculations, if the company had largely avoided using STRC preferred stock to finance its purchases this year, its alternative balance would have stood at 843,303 BTC.
Dividend costs surge: Strategyâs annual preferred dividend obligations are estimated at $1.56 billion (up from around $830 million at the start of the year), with STRCâs expansion accounting for about $725 million. At an estimated price of $83,000 per bitcoin, these annual costs amount to approximately 8,740 BTC.
The financing model dilemma: Although preferred stock helped the company acquire nearly 100,000 BTC in the first half of the year, Lunde questioned the approach, stating: âWas the preferred stock model a mistake? We believe so,â noting that issuing common stock would have been more efficient given the high cost of the coupons (12% on STRC versus a 4% return on cash reserves).
Reserve protection and recent moves: Strategyâs dollar reserve provides a protective buffer that would cover about 42 months of dividends, mitigating the risk of Bitcoin liquidations. In recent weeks, the company has made massive STRC buybacks (which closed at $99.90 on October 13) and proposed switching to daily dividend payments, pending shareholder approval.
$BTC
$MSTRB
$MSTR