Strategy Inc., previously known as MicroStrategy, aims to address its perpetual preferred stock, STRC, which is currently trading below its $100 par value. CEO Phong Le has announced a strategy to stabilize the stock while simultaneously resuming Bitcoin purchases, with a target of accumulating 1 million BTC.

Le has demonstrated his confidence in the stock's recovery by personally investing $1 million in STRC. This move, aimed at rebuilding cash reserves, is crucial for restoring investor faith, particularly given the company's substantial Bitcoin holdings of approximately 843,000 to 845,000 BTC. The STRC's trading situation presents less of a crisis and more of a reputational challenge, necessitating resolution before the company embarks on its upcoming capital raising efforts.

Addressing the STRC Dilemma

The STRC stock currently offers an annualized dividend of about 11.5%, but its value has been impacted by dwindling USD reserves, which has raised concerns regarding the company's ability to fulfill dividend obligations. Limited liquidity in the STRC market further complicates investment entry and exit, often resulting in price movements that do not reflect the stock's true value. Le's plan focuses on rebuilding the cash reserves to assure STRC holders of the stability of their dividends and to justify a return to par trading.

Aiming for $80 Billion Capital Raise

Le's long-term ambitions include raising over $80 billion through various debt and equity instruments. This capital influx would not only facilitate the purchase of additional Bitcoin but also support the company's goal of reaching a total of 1 million BTC. As of early May 2026, Strategy held more than 818,000 BTC with a cost basis of approximately $61.81 billion. Recent estimates suggest this number has increased, reinforcing the company's position as the largest Bitcoin holder among publicly traded firms. Achieving the 1 million BTC goal would represent an 18% increase from current holdings.

In late May or early June 2026, the company sold 32 BTC for around $2.5 million, marking its first sale since December 2022. Le described this transaction as a necessary test of internal processes rather than a sign of distress, underscoring the company's commitment to ensuring operational reliability in managing Bitcoin assets.

This material is for informational purposes only and does not constitute financial advice.