A Bitcoin purchase funded entirely by preferred stock sales puts MSTR at a critical crossroa
Strategy made another significant move in the Bitcoin market last week, acquiring 13,927 coins for approximately $1 billion between April 6 and April 12, 2026. The purchase was funded entirely through sales of the company’s Stretch perpetual preferred stock rather than its Class A common shares, a funding choice that reflects the evolving mechanics behind Michael Saylor’s relentless accumulation strategy.
The latest buy brings Strategy’s total Bitcoin holdings to 780,897 BTC, acquired for a combined cost of approximately $59.02 billion at an average price of $75,577 per coin. At current market prices, that position implies roughly $3.6 billion in paper losses. The holdings now represent more than 3.7% of Bitcoin’s fixed 21 million coin supply, cementing Strategy’s status as the single largest corporate holder of the asset by a considerable margin.
How the purchase was funded
To finance last week’s acquisition, Strategy sold 10,028,363 shares of its STRC preferred stock, raising approximately $1 billion through at-the-market sales. The company sold no shares of its Class A common stock during the same period, leaving $27.1 billion available under that separate ATM program. As of April 12, $21.6 billion worth of STRC shares remain available for issuance and sale under the preferred stock program, giving the company continued runway for future purchases through that funding channel.
STRC is a variable-rate cumulative preferred stock that pays monthly dividends and has become an increasingly central tool in Strategy’s Bitcoin acquisition framework alongside its common equity ATM. Saylor addressed the sustainability of that model over the weekend, noting that the company’s Bitcoin breakeven annual return rate sits at approximately 2.05%. The implication is that as long as Bitcoin appreciates faster than that threshold over time, the company can cover its dividend obligations without needing to issue additional common shares.
Saylor also offered a broader market perspective, suggesting that Bitcoin likely found its floor around $60,000 based on a pattern he described as the exhaustion of forced sellers during downturns. He dismissed concerns about quantum computing posing a threat to Bitcoin’s cryptographic security as theoretical and manageable over time.
What Wall Street thinks right now
TD Cowen weighed in on Strategy on Friday, cutting its price target by 20% to $350. The reduction reflected weaker Bitcoin price assumptions and a revised valuation for future dollar-denominated Bitcoin gains. Despite the target cut, the firm maintained a broadly constructive view of the public Bitcoin treasury company model, arguing that companies operating in this space add value to investors and their underlying digital asset ecosystems and that the sector is likely to attract increasing investor attention over time.
The broader analyst picture remains divided on MSTR, with the stock’s performance tied as directly to Bitcoin’s price trajectory as it is to any conventional equity metric.
The technical picture that has traders watching closely
From a technical standpoint, MSTR is doing something that tends to precede significant directional moves. The stock, trading around $127.51 and down approximately 1% on the day, is forming what analysts describe as a Bollinger Band squeeze at current levels. The upper band sits at $148.55, the midline at $131.92, and the lower band at $115.29, with all three converging to their tightest configuration since before the significant February selloff.
Price is currently holding between the 20-day exponential moving average at $130 and the lower Bollinger Band at $115.29, with the $125 to $128 zone acting as the immediate battleground. Key support levels to watch sit at $115.29 and then $107, which marked the February low. Resistance clusters at the Bollinger midline of $131.92, followed by the 50-day EMA at $138.60, and then the upper band at $148.55.
Bollinger Band squeezes resolve in one direction or the other, and the current configuration suggests a meaningful move is approaching. A sustained push above $138 would be interpreted as a genuinely bullish signal, while a break below $115 would open the door to a return toward triple-digit territory. Which way the squeeze breaks will likely depend as much on Bitcoin’s next move as on anything happening within Strategy itself.
Disclaimer: This article is for informational purposes only and not financial advice. Always research before making investment decisions.
Source: Parshwa Turakhiya, Benzinga via Yahoo Finance, and GuruFocus, published April 15, 2026