Strategy's board chairman Michael Saylor posted "More Orange" on X on Sunday morning. This is a pattern he has used to hint at the company's weekly Bitcoin purchases before the official Monday announcement for several months.
This signal came out when Bitcoin was trading around $78,000. The price has significantly dropped from its all-time high recorded in October 2025.
However, the scale of this purchase may be significantly constrained. Strategy's common stock fell 6% last week, closing below $150 per share, and the perpetual preferred stock Stretch (STRC) closed at $98.99 on Friday, falling below the par value of $100, which is the basis for the company issuing new shares through its ATM program.
How does the strategy raise funds for Bitcoin purchases?
The strategy typically raises capital through ATM (At-The-Market) issuance of common and preferred stocks, and with the funds thus obtained, has accumulated reserves for Bitcoin. Launched in July 2025, STRC is designed to operate like a short-term high-yield product, adjusting the variable dividend rate monthly to maintain the stock price near the $100 par value.
If STRC trades below par value, the strategy cannot avoid discounted issuance if it issues new shares through this ATM channel. The company, after its sixth increase since STRC was first listed, adjusted the February dividend rate up by 25 basis points to 11.25%.
These adjustments are intended to attract investors and pull the stock price back up to around par value, but the effectiveness of this is not guaranteed.
See also: CryptoQuant CEO Says Bitcoin's Capital Inflows Have Dried Up As PnL Index Turns Bearish
The numbers tell the story.
According to a recent disclosure, the strategy holds 712,647 Bitcoins, with an average acquisition cost of $76,037 per coin.
The company has purchased approximately 39,000 BTC this year alone. This was mainly funded through the sale of common stocks and STRC during the period when both were trading above their respective issuance benchmark prices.
The strategy holds $2.25 billion in cash, but these funds are primarily allocated for preferred stock dividends and debt interest payments and are not earmarked for Bitcoin purchases. The annual dividend obligation for the strategy's entire permanent preferred stock is approximately $887 million on an annualized basis.
Currently, both common stocks and STRC are under price pressure, and the strategy's ability to raise new capital for Bitcoin purchases is effectively diminished until market conditions improve or dividend adjustments sufficiently restore demand for STRC.
Read more: Abu Dhabi-Backed Entity Acquired 49% Of Trump-Linked Crypto Firm For $500M Before Inauguration, WSJ Reports
