Strategy Inc. (NASDAQ:MSTR) raised $3.3 billion in April through its STRC perpetual preferred stock paying 11.5% yields, fueling the largest institutional Bitcoin (CRYPTO: BTC) buying spree on record.

Small wonder Bernstein analysts see crypto’s “best days ahead.”

STRC Surpasses Wells Fargo, BofA As Largest Preferred Stock

STRC has swelled to an $8.5 billion market cap since its $2.5 billion IPO last July, making it the world’s largest preferred equity by market capitalization. 

That’s nearly twice the size of Wells Fargo’s (NYSE:WSF) Preferred Series L at $4.7 billion and well above Bank of America’s (NYSE:BAC) Series L at $3.7 billion.

Strategy issued nearly 33 million new STRC shares from April 1 through April 19, raising close to $3.3 billion. 

The company also issued more than 2.7 million common shares during that period, bringing in another $438 million.

From April 13 to April 19, Strategy bought $2.54 billion worth of Bitcoin, its largest acquisition since November 2024. 

The purchases brought total holdings to 818,334 BTC, about 3.88% of Bitcoin’s fixed 21 million supply, currently worth around $65 billion. 

Strategy now holds more Bitcoin than BlackRock’s IBIT (NASDAQ:IBIT), the world’s largest Bitcoin ETF.

How The Dividend Gets Paid

Strategy pays roughly $85 million monthly in cash dividends to STRC holders by issuing common stock and using those proceeds to fund the payouts. 

President Phong Le explained the yield comes from issuing shares into the market.

The practice is perfectly legal and transparent, though it resembles paying existing investors with money raised from new investors. 

Unlike straight debt, STRC represents little liquidity risk because Saylor can reduce the dividend payout if necessary.

Bernstein Sees STRC As The Engine

Bernstein analyst Gautam Chhugani called STRC a “high-yield, low-volatility vehicle” pulling in income-focused investors and recycling that capital into more Bitcoin. 

Strategy is proposing to shift from monthly to twice-monthly dividend payments while keeping the 11.5% yield intact.

Around 60% of Bitcoin’s supply hasn’t moved in over a year, tightening float just as Strategy keeps stacking. 

Bernstein pointed to Morgan Stanley’s (NYSE:MS) recently launched Bitcoin ETF and Charles Schwab’s new spot Bitcoin and Ether trading platform as widening institutional access.

STRC Risks: No Claim On Bitcoin Holdings

Strategy faces more than $1.2 billion a year in interest and preferred dividend obligations.

The company’s only real operating business, software, generates a mere $477 million in annual revenue.

Strategy also reported more than $5 billion in losses on its Bitcoin in 2025.

STRC holders have no direct claim to Strategy’s Bitcoin holdings.

Real risk exists that STRC could fall precipitously from its $100 par value if Saylor is forced to cut the 11.5% dividend. MSTR common stock is down more than 50% over the last 12 months.

Polymarket bettors give Bitcoin a 42% chance of reaching $100,000 by year-end but a 55% chance of revisiting $55,000 before December 31.

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