Strategy’s expanded $64B Bitcoin buying plan leans on high-yield funding but could push BTC higher

Strategy (formerly MicroStrategy) has significantly expanded its at-the-market (ATM) fundraising capacity, announcing new programs for common stock and two preferred securities on March 23. This move increases the company's total active issuance capacity to over $60 billion, signaling a strategic reconfiguration of its capital structure to support its Bitcoin treasury strategy.

New Fundraising Programs Detailed

The company's new ATM programs allow it to sell up to $21 billion of Class A common stock (MSTR), up to $21 billion of Series A Perpetual Stretch preferred stock (STRC), and up to $2.1 billion of Series A Perpetual Strike preferred stock (STRK). Strategy has also broadened its syndicate of sales agents, adding Moelis, A.G.P./Alliance Global Partners, and StoneX.

While Strategy intends to continue utilizing its prior common-stock and STRC prospectuses, its prior STRK offering, which had covered approximately $20.34 billion, was terminated effective March 22. Cumulatively, these programs leave Strategy with about $64.15 billion in active issuance capacity.

STRC Takes Prominence in Preferred Stock Mix

A key development is the expanding role of STRC, Strategy's Variable Rate Series A Perpetual Stretch preferred stock. The company increased the authorized STRC preferred shares from 70,435,353 to 282,556,565. Conversely, authorized STRK preferred shares were reduced from 269,800,000 to 40,270,744.

STRC has become the most liquid preferred stock in the market since its 2025 launch, with an average daily trading volume of approximately $295.9 million, surpassing competitors. It offers investors a variable dividend yield of 11.5% and has attracted institutional holders like BlackRock's iShares Preferred and Income Securities ETF.

Data from STRC.live indicates that the STRC program has financed the acquisition of over 50,000 BTC since its inception.

Analysis of Potential Bitcoin Acquisition Pace

Bitcoin analyst Adam Livingston suggested that the expanded STRC program could drive significant Bitcoin acquisitions. He explained that for every $1 of STRC issuance, approximately $1.94 of MSTR issuance is needed to maintain the company's amplification ratio. If STRC issuance continues at a pace of $2 billion per month, the corresponding common-stock issuance could push Strategy's combined BTC acquisition rate to nearly $5.9 billion per month.

Under this scenario, the full deployment of the new $21 billion STRC and $21 billion MSTR programs could finance the purchase of over 450,000 BTC within five to seven months, although the MSTR component might limit the execution speed.

Financial Considerations and Skepticism

The expanded ATM programs come with a substantial potential cost. If the $21 billion STRC program is fully utilized, it could add approximately $2.4 billion in annual dividend obligations. Strategy has set aside about $2.25 billion in USD reserves to cover these obligations.

However, traditional credit analysts express skepticism. Jeff Dorman, CIO of Arca, argued that while Strategy's balance sheet appears solvent, it fails the critical metric of interest coverage, generating virtually zero earnings before interest and taxes. Dorman noted that without cash flow, the company faces a dilemma: default on debt and preferred shares, dilute common shareholders by issuing more stock, or sell Bitcoin, thereby diminishing the underlying asset.

He concluded, "You can’t pay the bills (interest/dividend payments) without cash flow, and that cash flow has to come from somewhere."