This week, the institution Strategy plans to raise funds by issuing preferred shares STRC (Stretch) to purchase approximately 4,535 bitcoins, a scale already marked in the data on BitcoinTreasuries.NET. According to the plan, this funding is expected to execute the buying operation on next Monday, adding a significant new demand to the spot market in addition to existing ETFs and over-the-counter funds. This will not only change the actual buying distribution on the order book in a short time but also makes Strategy a typical institutional case that directly magnifies Bitcoin exposure using equity tools, further blurring the line between the crypto market and Wall Street financial engineering.

The Leveraged Path from MicroStrategy to Strategy

Over the past few years, MicroStrategy has continuously supplemented its dollar chips through convertible bonds, corporate bonds, and multiple rounds of secondary market equity issuance for phased purchases of Bitcoin, allowing its balance sheet to evolve from a single software business to a highly Bitcoinized “pseudo-bitcoin spot ETF.” The core of this model is to leverage long-term bullish leverage on Bitcoin using bond and equity financing tools in the capital market, while distributing the risks of price fluctuations among different investors.

This time, Strategy's choice to issue preferred shares STRC essentially replicates and modifies MicroStrategy's path: using traditional equity financing to provide ammunition for Bitcoin asset allocation, but through the more detailed capital structure of preferred shares, allowing some investors to receive fixed or more clearly expected dividend returns, while the company itself bears the significant fluctuations in Bitcoin prices. Unlike merely buying spot in the secondary market, data platforms like BitcoinTreasuries show that more and more institutions are designing various “equity shell + Bitcoin asset” structured products, shifting institutional holdings from simple coin ownership to more financial engineering-oriented leveraged and layered configurations.

4,535 BTC Buying Demand: What Kind of Concentrated Demand

According to disclosures from BitcoinTreasuries.NET, Strategy's fundraising target corresponds to approximately 4,535 BTC. In the current overall market scale, this number may not change the long-term supply-demand pattern, but it is sufficient to produce considerable disturbances on the short-term order book on the execution day. Especially in the mainstream exchanges and ETF market-making quoting systems where liquidity is concentrated, if this concentrated buying enters at market price or close to market price, it can easily push up short-term transaction price levels and amplify slippage.

When the buy operation is executed next Monday, market depth, order density, and market makers' hedging behavior will determine at what specific cost these 4,535 BTC will be traded. If liquidity is ample and selling is active, this buy order may be smoothly absorbed by the market, diluting price fluctuations; if the order book is relatively thin on that day, it may amplify the buyer's impact in a short time, quickly pushing prices up and clearing the sell orders above, with arbitrage and hedging funds gradually pulling the price back to the equilibrium range.

More critically, this buy order needs to be observed within a broader framework: against the background of sustained net inflow into spot ETFs and intense bull-bear interplay in the futures market, Strategy's concentrated buying represents a newly added “structural rigid demand.” Its marginal effect may not merely lift prices on a particular day but reinforces a signal—that Bitcoin is increasingly embedded in institutional balance sheets, “locked” into long-term allocations via financial engineering, creating cumulative effects on circulation supply and market imagination.

The Temptation of 11.5% Dividends: Who is Paying for the Volatility

Current public information indicates that the dividend yield on STRC preferred shares is said to be 11.50% maintained in April 2026, mainly derived from a single source from Strategy's official account stating “Stretch Dividend Rate maintained at 11.50% for April 2026. $STRC”, which still requires further verification through subsequent formal company announcements and prospectus documents, as the specific terms and interest calculation mechanisms have not been fully disclosed in public materials. In other words, what the market currently sees is a high-dividend “anchor point,” but its sustainability and risk control details remain in a state of information asymmetry.

Structurally, high dividends mean that Strategy needs to use sufficiently stable and predictable cash flow to cover this payment obligation, while the underlying funds raised are used to purchase highly volatile Bitcoin assets. On the surface, preferred share investors are receiving a 11.5% nominal return, but in reality, the price risks of Bitcoin in the coming years are more transferred to the company’s shareholders and other risk-bearers: as long as Bitcoin's appreciation covers the high dividend and financing costs, the structure can operate smoothly; once the price falls into a prolonged retracement or sideways movement, the dividend commitments may erode the company's safety margin.

In the current backdrop of a high global interest rate environment, the nominal dividend of 11.5% not only represents a clear premium over traditional yield curves but also serves as a test of market confidence. Traditional capital contributors willing to purchase STRC are accepting a high-yield temptation priced in fiat currency while bearing a combined bet of credit risk and asset price risk: they need to believe that Strategy can maintain its ability to pay amidst the volatile crypto cycle, which ultimately still depends on the matching of Bitcoin price paths and the company's risk control capabilities.

The Blurring Boundaries of Traditional Equity Tools and Crypto Assets

Preferred shares are tools used for optimizing capital structures and layered income distribution in the traditional financial system, and now being used by Strategy as a leverage intermediary to gain exposure to Bitcoin, indicating that the boundaries between traditional equity tools and crypto assets are continuously being redrawn. By issuing preferred shares to lock in some fixed income obligations, the company converts the raised funds into a concentrated bullish bet on Bitcoin, transforming equity tools originally serving industrial expansion or mergers and acquisitions into “multipliers” for entering the crypto market.

For contributors, subscribing to STRC is no longer just an ordinary equity investment but an indirect bullish exposure to Bitcoin in exchange for fiat yield. Preferred share investors are taking on what appears to be a certain dividend rate, behind which lies the company's balance sheet constructed with high-volatility assets as collateral; their risk exposure to Bitcoin is wrapped in a layer of equity shell but has not truly disappeared.

This “equity shell + Bitcoin core” structure also presents new challenges for regulatory recognition and information disclosure: should it be regarded as traditional preferred shares or some form of disguised crypto-related structured product? How will the company disclose risks while sufficiently revealing the link between Bitcoin price fluctuations and dividend payments? How to mark the fair value and impairment risks of such assets under the existing accounting and regulatory framework? These questions have yet to form mature answers, but it is foreseeable that with the increase of similar structures, regulatory bodies and auditing standards will be forced to provide clearer boundaries.

The Narrative and Reality of Institutions Rushing Toward One Million Bitcoins

The statement “moving towards the 1 million BTC target” currently remains within the narrative spread in the market and has not yet been verified as Strategy's formal official commitment, nor is there a clear timeline or path breakdown. It is more prudent to view it as an emotional imagination rather than a hard target written into the company’s articles of incorporation. Whether for MicroStrategy or Strategy, what can truly be measured are the current holding sizes and disclosed fundraising plans, rather than unmaterialized long-term slogans.

Statistics from BitcoinTreasuries provide another layer of reality: the total number of Bitcoins held by various institutions—public companies, ETFs, funds, governments, and other vehicles—is continuously rising, leading to the market's perception that “circulating supply is being long-term locked.” As more institutions pack Bitcoin into their balance sheets through financial engineering paths, the proportion of chips available for retail investors and short-term traders to freely speculate in the secondary market is marginally being compressed.

In an increasingly concentrated supply and locked long-term chips scenario, the pricing power and volatility tolerance of retail and institutional investors are also diverging: institutions can rely on longer funding terms and more complex hedging tools to endure unrealized losses within a broader price range and even use volatility to add positions in the opposite direction; retail investors, on the other hand, are often forced to handle drawdowns over short cycles and may be emotionally driven to exit during extreme volatility. From this perspective, narratives around “one million BTC” essentially reinforce a trend—Bitcoin is evolving from an asset dominated by grassroots players to one led by a few large capital and complex structures.

The Next Bull Market Fuel or Another Leverage Trap

Strategy's leveraging of Bitcoin through STRC preferred shares continues the trend of Wall Street using traditional financial tools to amplify crypto risk exposure: adding dividend or interest obligations on one end of the balance sheet while betting raised funds on high-volatility, high-elasticity Bitcoin markets on the other. This model can be packaged as a “capital efficiency maximization” clever play during bull markets but may expose inherent vulnerabilities within the structure during bear markets.

As long as the macro environment and regulatory attitudes do not experience intense reversals, such structural buy orders are likely to continue increasing, providing a “visible bottom support” for Bitcoin prices: long-term allocations by ETFs, sustained holding on company balance sheets, combined with concentrated buy orders raised through preferred shares, bonds, and other tools, compress the available circulating chips in the spot market, strengthening market confidence in mid-term and long-term upward trends.

However, the same mechanism can backfire when price cycles reverse: high dividends combined with high leverage mean that once Bitcoin enters a deep correction or remains at low levels for extended periods, institutions like Strategy will face dual pressures of cash flow and market capitalization. To maintain dividend payments and leverage safety margin, they may be forced to reduce positions even at relatively unfavorable prices, which in turn exacerbates downward trends. This is why every “bull market fuel” enhanced by financial engineering must also be seen as a potential trigger for the next round of deleveraging crises.

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