Strategy (STRC) CEO Invests $1M in Preferred Stock as Shares Trade Below Par

Key Takeaways

Table of Contents

CEO Phong Le made a personal $1 million purchase of STRC preferred stock, committing to hold until shares reach $100 par value
Preferred shares declined to $82.53, driving the effective yield up to 14% before recovering following Le’s public disclosure
Strategy purchased an additional 520 Bitcoin for $34.9 million, expanding total holdings to 847,363 BTC
USD cash reserves increased by $300 million to reach $1.4 billion for dividend and debt coverage
Benchmark analyst Mark Palmer disputes concerns that STRC’s weakness signals fundamental problems with Strategy’s business model

Strategy’s CEO Phong Le made a significant personal investment on Monday, acquiring $1 million worth of the company’s STRC preferred stock. In a social media post, Le indicated his intention to maintain the position “until it reaches par, likely longer.” The preferred shares had recently touched $82.53, substantially beneath the $100 par value.

I bought $1 million of $STRC today. Will hold it until it reaches par, likely longer.

— Phong Le (@phongle) June 22, 2026

Following Le’s public disclosure, STRC shares climbed 1.46% to close at $89.88.

The Strategic Importance of STRC

STRC preferred stock serves as Strategy’s primary capital-raising mechanism for Bitcoin acquisitions. When shares trade at or above the $100 par value, the company can efficiently issue new securities and deploy the capital toward additional Bitcoin purchases.

Strategy Inc, MSTR

With STRC trading below par, this financing avenue is essentially closed.

The decline elevated STRC’s effective yield to 14%, a rate typically associated with high-risk debt instruments. In less than twelve months, Strategy issued over $10 billion of these preferred securities and increased the dividend rate seven times to 11.5%.

The cumulative dividend obligations across Strategy’s preferred share classes create financial strain for a company whose legacy software operations generate minimal revenue.

Continued Bitcoin Accumulation Amid Market Pressure

Despite challenges with STRC pricing, Strategy continued its Bitcoin accumulation strategy last week. The company purchased 520 BTC at an average cost of $67,068 per coin, representing $34.9 million in total investment. This acquisition brings Strategy’s complete Bitcoin position to 847,363 coins, accumulated at an average price of approximately $75,651.

This purchase followed Strategy‘s first Bitcoin disposal in several years at the end of May, when it sold 32 BTC for roughly $2.5 million to partially fund STRC dividend requirements.

Concurrently, the company executed a sale of 2.71 million common stock shares last week, generating $335.5 million in proceeds.

Strategy disclosed that its USD cash reserves have expanded to $1.4 billion, representing a $300 million increase. Management indicates these reserves are designated to maintain the credit quality of its preferred securities and ensure coverage of upcoming dividend and debt obligations.

The company maintains $25.4 billion in remaining capacity under its current equity offering program.

Benchmark analyst Mark Palmer challenged what he characterized as “alarmist commentary” surrounding STRC’s price weakness. Palmer emphasized that reduced funding efficiency differs substantially from fundamental model failure.

Strategy’s common shares declined 2.6% on Monday, while STRC preferred stock advanced 1.1% during the session.

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