Strategy, formerly known as MicroStrategy, has acquired an additional 22,305 bitcoin, pushing its total holdings past 700,000 coins. The purchases, funded through sales of common and preferred stock, highlight the company's innovative approach to building a bitcoin treasury. This move has drawn interest from major institutional investors like BlackRock.
Strategy announced on January 20, 2026, that it purchased 22,305 bitcoin for about $2.13 billion between January 12 and 19. These acquisitions were made at an average price of $95,284 per bitcoin, according to a filing with the U.S. Securities and Exchange Commission. The total now stands at 709,715 bitcoin, valued at roughly $64 billion, with a cost basis of $53.92 billion—or an average of $75,979 per coin—resulting in approximately $10.5 billion in unrealized gains.
The funding came from at-the-market sales of Class A common stock (MSTR), generating $1.8 billion from 10,399,650 shares, leaving $8.4 billion in remaining capacity. Sales of preferred stocks added further proceeds: $294.3 million from 2,945,371 shares of perpetual Stretch preferred stock (STRC), with $3.6 billion left, and $3.4 million from 38,796 shares of Series A Perpetual Strike Preferred Stock (STRK), with $20.3 billion remaining.
Strategy's bitcoin-linked securities offer varied exposure levels on the Nasdaq, appealing to different risk profiles without requiring direct cryptocurrency knowledge. The STRC provides an 11% annual dividend, paid monthly and adjustable to maintain a $100 par value; it has funded 27,000 bitcoin so far. Other options include STRK at 8% with convertibility to common stock capturing 40% of equity gains, STRF at 10% cumulative and non-convertible for conservative investors ($1.6 billion capacity left), and STRD at 10% non-cumulative and non-convertible ($1.4 billion remaining). In Europe, the euro-denominated STRE offers 10% quarterly dividends, cumulative with penalties up to 18% for missed payments.
Institutional adoption is growing, with funds like Fidelity Capital & Income Fund and Virtus InfraCap U.S. Preferred Stock ETF holding positions. BlackRock's iShares Preferred and Income Securities ETF, managing $14.25 billion as of January 16, has invested about $470 million across Strategy's preferreds—3.3% of its assets—including $210 million in STRC.
Valentin Kosanovic of Capital B called this a 'watershed moment for digital credit,' stating, 'This is another clear, factual, unquestionable demonstration of the materialization of the wave of institutionalized legacy BTC-pegged financial products.'
However, the model relies on capital markets to fund dividends, creating a circular loop: securities sales buy bitcoin, which backs further issuances. Michael Fanelli of RSM US pointed to risks like bitcoin price drops, lack of insurance, and untested performance in downturns, noting the perpetual nature without maturity dates. Adam Livingston, a bitcoin analyst, described STRC as a 'flywheel' turning fixed-income demand into bitcoin accumulation.
