Strategy raised the annual dividend rate on its Variable Rate Series A Perpetual Stretch (STRC) Preferred Stock from 10% to 10.25%, effective Oct. 1.
The acquisition brought Strategy’s total Bitcoin holdings to 636,505 BTC, purchased at an aggregate cost of $46.95 billion. The position represents over 3% of Bitcoin’s capped supply and ranks among the largest corporate holdings of the asset.
Strategy financed the September purchase through $425.3 million in Class A common stock sales and $46.5 million from preferred share programs, including STRK, STRF, and STRD offerings.
Short seller James Chanos criticized the funding mix, claiming the firm “reduced its leverage” by relying heavily on common equity rather than preferred stock. He argued that the imbalance suggests a weak investor appetite for income-focused securities.
Strategy countered that demand remains strong. The company has raised $5.6 billion through preferred stock offerings in 2025, accounting for 12% of all US initial public offerings this year.
Bitcoin treasury companies are facing scrutiny over their capital-raising structures, particularly PIPE deals, which can create potential downward pressure on share prices.
Kindly MD surged 18.5 times following its May PIPE announcement before collapsing 97% to match its $1.12 PIPE price.
Strive trades at $3.00, down 78% from 2025 highs, while its $1.35 PIPE price suggests potential for further declines when investors can sell next month.
According to the report, the SEC and other regulators are examining whether these firms, or individuals connected to them, benefited from trades taking place before official crypto acquisition announcements.
