preferred on
Points of Focus
- Strategy raised $7.53 billion through STRC issuances in 2026 to expand its Bitcoin treasury.
- BTC traded at $64,128.93, just below the short-term EMA cluster near $64,157.
- STRC’s 12% dividend and $89.46 price raise the cost of keeping the funding channel open.
Bitcoin (BTC) traded at $64,128.93 on Wednesday, Aug. 5, as Strategy pushed its preferred-stock model toward the center of its Bitcoin funding strategy. STRC has raised $7.53 billion in 2026, giving the company another channel to finance BTC purchases without relying only on common-stock sales or convertible debt. The key test is whether Strategy can keep that channel open while STRC remains below $100 and Bitcoin faces short-term resistance near $64,157.
Strategy rebuilds STRC as a Bitcoin funding channel
Strategy wants STRC to trade near its $100 stated value, where its current policy would allow new issuance to restart. Its website showed the preferred stock at $89.46, while the annual dividend remained at 12%. Strategy said it would maintain that rate until STRC trades near $100 for a sustained period.
The mechanism creates a two-stage funding cycle. Strategy first supports STRC through dividends and discounted repurchases and then can sell new STRC shares near or above the stated value and direct the proceeds toward Bitcoin. That model has already funded purchases. In May 2026, Strategy used proceeds from $2 billion in STRC issuance and $84 million in MSTR sales to help fund the purchase of 24,869 BTC.
Strategy creates Digital Credit. https://t.co/LQiBaRs1Ma
— Michael Saylor (@saylor) August 5, 2026
The near-term cash flow points in the opposite direction. Strategy sold 1,638 BTC for $104.73 million between July 27 and Aug. 2. It used $52.4 million for preferred dividends and $52.3 million for STRC repurchases. The company ended the period with 842,138 BTC, down from 843,775 a week earlier. Supporting the funding instrument has temporarily reduced the Bitcoin reserve it is designed to expand.
Bitcoin’s price tests short-term EMA resistance
BTC remains just below the short-term exponential moving average (EMA) cluster near $64,157, leaving the rebound unconfirmed. A sustained move above that zone would strengthen the recovery case, while the 50-day and 200-day EMAs at $63,873 and $63,845 form the first support area.
The relative strength index (RSI) near 51 points to neutral momentum, while the moving average convergence/divergence (MACD) below zero indicates limited upside strength. Bitcoin is holding around $64,000. A move below that area would expose the MA cluster between $63,700 and $63,900.
Exchange-traded fund (ETF) demand offers some support after US spot Bitcoin funds added $170.09 million on Monday and $211.49 million on Tuesday. Higher real yields remain a risk for Bitcoin.
The 10-year real Treasury yield reached 2.43% in the week ending July 31, giving investors a government-backed alternative as Strategy maintains STRC’s 12% annual dividend.
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