Michael Saylor’s Bitcoin buying spree faces the risk of a slowdown as one of its key funding tools remains below par value. Since last week, the STRC shares have continued trading below the $100 par value.
How Can STRC Staying Below Par Value Affect Strategy’s Bitcoin Buying?
Preferred stock of Strategy, STRC, was below their $100 par value on another fourth consecutive session. STRC traded at $99.47, up by 0.17% gain in pre-market trading on Wednesday, April 22.
Earlier, Michael Saylor-backed STRC closed at $99.28, down 0.11% on Tuesday, April 21. In that session, it recorded a subdued volume of approximately 1.8 million shares, which is about 47% of its normal trade. The fall is days after the stock ex-dividend with the yield now at about 11.5%.
STRC trading below $100 could create hindrance in Michael Saylor’s Bitcoin acquisition initiative. For context, STRC is structured to trade at a close to its face value of $100. The company modifies the rate of dividends in order to impact demand.
If the price continues drops, the company offers higher yield to maintain liquidity with it recently proposing semi-monthly dividends. In the event that it increases beyond the par, payout may be decreased. The mechanism facilitates Michael Saylor’s Strategy to issue new shares at a close to face value. It can then direct proceeds into the purchase of Bitcoin.
However, the present discount makes it hard to do so. Capital raises would also be less efficient as it would need to offer better terms when issuing shares at a lower value than the par value. It could slow down STRC’s funding for Bitcoin acquisition.
About The Latest $2.5 Billion Bitcoin Purchase
Despite this limitation, Strategy announced a large BTC acquisition in recent times. The company has purchased 34,164 BTC at an average price of 74,395 at $2.54 billion. This increased the total holdings to 815,061 BTC worth around $61.5 billion as of April 19. The average cost that the company incurred to buy this stash is $75,527 per Bitcoin.
Strategy now holds over 100,000 Bitcoin than the iShares Bitcoin Trust of BlackRock, which reported 802,823 BTC. The company has also earned a yearly-to-date yield of 9.5% in Bitcoin in 2026. Moreover, Michael Saylor spotlighted a BTC Gain of $3.6 billion lately.
The capital inflows previously played an important role in maintaining the purchasing rate. STRC saw Strategy raise approximately $1.76 billion over the last week. Part of that cash probably went into the recent acquisition.
On the contrary, the STRC ATM shows zero proceeds this week, which could negatively impact the company’s BTC buying spurt.
Michael Saylor’s Strategy Paused BTC Buying In March
In March, the company was buying Bitcoin at a very high rate. It purchased 22,337 BTC in the week that ended March 15. This purchase was aided by the sales of $1.18 billion through STRC.
An additional 17,994 BTC were added in the previous week and approximately $377 million funds came from STRC. Thereafter, the situation dwindled. Michael Saylor’s Strategy suspended buying Bitcoin in late March.
It coincided with STRC being unable to raise new capital. The halt also came as the preferred stock traded below par, which restricted the impact of its at-the-market issuance model. Currently, it shows a similar pattern, which has had investors concerned about the company’s future BTC purchases.