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Earlier this week, Strategy Inc. revealed its largest Bitcoin purchase to date, purchasing US$2.54 billion worth of the cryptocurrency to increase its holdings to 815,061 BTC and surpass BlackRock’s iShares Bitcoin Trust as the world’s largest institutional holder.
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The company funded this record acquisition primarily through the sale of its STRC perpetual preferred stock and new equity, highlighting an unusual capital-raising “machine” that converts investor demand directly into additional Bitcoin on its balance sheet.
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Next, we’ll examine how the strategy’s use of perpetual preferred equity to amass massive amounts of Bitcoin reshapes its overall investment narrative.
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To own the strategy today, you have to believe that the company can operate as a leveraged Bitcoin proxy while still running a trusted software business. The latest $2.54 billion Bitcoin purchase, funded mostly through STRC perpetual preferred and new equity, reinforces that identity and accelerates near-term catalysts around the ability to raise capital, Bitcoin price volatility and Q1 2026 results on May 5. It also reduces execution risk. The STRC “machine” only works if investor appetite for the 11.5% yield backed by volatile Bitcoin remains strong and the market accepts continued dilution after 12-month total returns have more than halved. If that appetite wanes, given the strategy’s earlier commitment to sell Bitcoin if its market value falls short of its holdings, the story could quickly flip from accumulator to forced seller.
But there is a catch here that current and prospective shareholders should not ignore. Strategy’s shares are rising but are still potentially undervalued. Find out how big the opportunity could be.
Estimates of the fair value of the eight Simply Wall St communities range from approximately US$372.50 to US$705, underscoring how far apart private investors are in valuing the strategy. Set this against a business model that is now even more tied to perpetual preferred funding and the potential for Bitcoin-backed sales, and you can see why multiple perspectives have to be weighed before deciding how this story might impact returns.
See 8 other fair value estimates on the strategy – Why the stock price could be 4 times higher than the current price!
Don’t just follow the ticker – dig into the data and build a conviction that’s truly your own.