Executive Chairman Michael Saylor explained that Strategy’s Bitcoin‑backed financing model builds on financial mechanisms that have evolved over more than four centuries. In an essay published on November 7, Saylor traced the origins of digital credit to the 1602 introduction of transferable corporate ownership by the Dutch East India Company, and highlighted later developments such as preferred stock issued by the Baltimore & Ohio Railroad in 1836 and the use of shelf registrations in the 1980s.
Bitcoin as a reserve asset
Saylor described Bitcoin as the reserve asset that underpins Strategy’s financing approach. The company combines its Bitcoin holdings with preferred‑share securities, allowing investors to receive cash distributions without directly owning the cryptocurrency.
STRC offering and recent activity
In July 2025 Strategy raised approximately $2.521 billion through its Stretch (STRC) preferred‑share offering and used the proceeds to acquire 21,021 BTC. The company continued to add to its treasury, purchasing 334 BTC in October with $15.7 million from common‑stock sales and $13 million from existing cash.
Dividend policy changes
Strategy recently revised the STRC dividend schedule to use daily record dates, with cash payments made on the next business day. The annualized dividend rate was maintained at 12 % for November, and the company reported a $4.83 billion reserve plus $242.4 million in cash, sufficient to cover roughly 3.4 years of dividend and interest obligations.
Buybacks and future financing potential
During the week ending October 25, Strategy spent $204.9 million on STRC preferred‑share buybacks, bringing total buyback spending to about $2.04 billion. Saylor indicated that the model could generate up to $30 billion of digital credit without issuing additional common shares, though this reflects potential financing capacity rather than a specific capital raise. The company also plans to extend the daily dividend schedule to other preferred‑share series (STRF, STRK, STRD) starting January 1 2027.
