Equity-Funded Bitcoin Buying And Higher Preferred Dividends Could Be A Game Changer For Strategy (MSTR)

• In early January 2026, Strategy Inc. disclosed that it had raised additional capital by selling common shares, using the proceeds to buy over 1,280 Bitcoins, increase its USD reserve to about US$2.25 billion, and support an 11% annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock.
• This combination of continued Bitcoin accumulation, larger cash reserves, and higher preferred dividends signals an effort to balance crypto exposure with stronger funding for ongoing obligations ahead of key index-inclusion decisions.
• We’ll now examine how this renewed Bitcoin buying funded by equity issuance shapes Strategy’s investment narrative and risk-reward profile.

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What Is Strategy's Investment Narrative?

To own Strategy today, you have to buy into the idea that a listed software company can function as a leveraged Bitcoin and yield vehicle, with the core business and new Mosaic partnerships sitting in the background. The latest move to sell more common shares, add 1,286 BTC, lift the USD reserve to about US$2.25 billion and push the STRC preferred dividend to 11% reinforces that story rather than changing it. In the near term, the real swing factors remain MSCI index inclusion, Bitcoin volatility and confidence in Strategy’s ability to fund rich preferred payouts despite large unrealized crypto losses. The bigger cash buffer modestly strengthens the dividend and funding narrative, but it also underscores the ongoing trade‑off between dilution, index risk and concentrated exposure to a single asset.

However, investors should also weigh how much dilution risk they are really taking on.Our valuation report here indicates Strategy may be undervalued.

Exploring Other Perspectives

Seven fair values from the Simply Wall St Community span roughly US$490 to US$705, showing how far apart private investors can be. You are weighing those views against a business whose largest short term catalyst is an external index decision and whose balance sheet is heavily tied to Bitcoin, which could influence both sentiment and how the company is financed going forward.

Explore 7 other fair value estimates on Strategy - why the stock might be worth over 4x more than the current price!

Build Your Own Strategy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Strategy research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Strategy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Strategy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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