How Strategy new financial channels will reignite Bitcoin buying spree
Strategy Inc., led by Michael Saylor, has slowed its Bitcoin purchases due to market maturity and reduced funding sources but is setting up new funding mechanisms. The firm launched euro-denominated Series A Perpetual Stream Preferred (STRE) securities with a 10% annual dividend and raised the coupon on its US-listed Variable-Rate Series A Perpetual Stretch Preferred (STRC) to 10.5%, stabilizing its price. These actions aim to reopen funding channels and increase Bitcoin acquisitions. Strategy reported $2.8 billion in quarterly net income, mainly from Bitcoin holdings, and plans to continue leveraging digital credit issuance to fund Bitcoin accumulation. Analysts view the firm's strategy as a potential catalyst for Bitcoin's market sentiment and broader financial integration.
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Strategy Inc. Slows Bitcoin Accumulation
After years of aggressive Bitcoin purchases, Strategy Inc., led by Michael Saylor, has reduced its acquisition pace. Recent filings reveal that Bitcoin (BTC) purchases have decreased to just a few hundred coins, a substantial slowdown for the firm known as the largest corporate holder of Bitcoin. During the third-quarter earnings call, Saylor attributed this slowdown to the company reaching an “inflection point.”
Saylor explained: “Our multiple-to-net asset value, MNAV, has been trending down and has been trending down over time as the Bitcoin asset class matures, as the volatility decreases.”
New Financing Channels Raise Prospects
Despite the slowdown, fresh financing channels are already in play, providing potential for future Bitcoin purchases. Strategy Inc. has launched a 10% euro-denominated perpetual preferred stock listed in Luxembourg and an adjustable-rate US issue, recently stabilized at its $100 par value. These instruments represent a chance to reignite capital flows into Bitcoin reserves.
These developments reflect yield-hungry investors’ interest in financing Saylor's $70 billion Bitcoin strategy, leveraging digital scarcity as a key value proposition.
Introduction of the Series A Perpetual Stream Preferred (STRE)
In recent moves to expand internationally, Strategy launched the Series A Perpetual Stream Preferred (STRE) on November 3. This euro-denominated security offers a 10% annual dividend, paid quarterly in cash, with cumulative increases of 100 basis points per missed period, up to a maximum of 18%.
The company stated that proceeds from STRE will be used for “general corporate purposes, including Bitcoin acquisition.” Analysts note that the current economic conditions in Europe, including tight corporate bond spreads and strong investment-grade inflows, create a favorable backdrop for instruments like STRE, which stands out with its attractive 10% coupon rate.
US Movements: STRC Reaches Par Value
On the US front, Strategy announced an increase in the coupon rate for its Variable-Rate Series A Perpetual Stretch Preferred (STRC) by 25 basis points to 10.5%. This adjustment helped bring STRC back to its $100 par value for the first time since its July launch.
Mark Harvey, a Strategy investor, emphasized the market potential, stating: “The TAM for $STRC is $33 trillion. That’s $33 trillion of yield-chasing capital, which is attracted to STRC like a magnet because it offers a higher yield (10.5%).” Harvey and other analysts predict that maintaining STRC’s par value will enable the company to issue new shares and use the proceeds to expand Bitcoin holdings, further strengthening its balance sheet.
Broader Implications for Bitcoin
Experts believe that Strategy Inc.’s innovative financing strategies could significantly impact the Bitcoin market. Historically, the company has been a key driver of market sentiment by absorbing substantial amounts of BTC, as evidenced by its addition of 40,000 BTC during past quarters.
CryptoQuant analyst JA Maarturn noted that Strategy’s stock remains “highly correlated with Bitcoin’s price,” meaning its actions often reflect and impact Bitcoin’s trading behavior. With both STRC and STRE fueling funding flows, the company aims to create a two-continent funding loop capable of reviving Bitcoin accumulation.
Liquidity and the New Market Dynamic
Beyond accumulation, Strategy’s financing models integrate Bitcoin deeper into the traditional financial ecosystem. Each share sold channels conventional yield-seeking capital into Bitcoin-backed value, reframing Bitcoin as a collateral base for yield engineering rather than just a speculative asset.
Peter Duan, a Bitcoin analyst, highlighted a key advantage: “Strategy’s preferreds range from 12X-70X more liquid than average USD and Euro-listed preferreds.” This high liquidity reduces funding friction, enabling faster capital flow into Bitcoin acquisition and fostering new levels of market liquidity and investor confidence.