Bitcoin critic Peter Schiff stated on an October 2 podcast that Strategy has lost its primary preferred stock mechanism for funding Bitcoin purchases, even as its Stretch (STRC) stock pulled back to $99.4, near its $100 par value.
STRC Rebound and Volatility Metrics
Schiff noted that STRC recovered from a low of about $75 earlier this year—a drop CEO Phong Le attributed to unexpected leverage—driven by weekly company buybacks and a market rebound. Despite the stock reaching $99.4, Schiff argued Executive Chairman Michael Saylor cannot issue additional preferred shares to acquire more Bitcoin. Addressing the stock's stability, Saylor posted on October 3, 2026, that STRC’s 30-day historical volatility dropped to 9% as of October 2, placing it below the 10% volatility reading of the SPDR S&P 500 ETF (SPY).
Shifting Capital Allocation to Common Stock
Weekly corporate filings indicate that Strategy last sold STRC shares through its at-the-market program between May 11 and May 17, raising approximately $1.95 billion and leaving its remaining STRC capacity unchanged at $17.51 billion in every filing since. After a 10-week summer pause where the company sold coins to fund dividends and preferred stock repurchases, it shifted to issuing Class A common stock (MSTR). Proceeds from MSTR common stock funded purchases of 4,603 BTC in late August and 1,665 BTC in late September, alongside $75.7 million spent from its USD Cash account to acquire 950 BTC. Furthermore, between September 21 and September 27, Strategy redirected $103.5 million raised from MSTR sales to buy back STRC shares. The company also maintained a $5.02 billion USD Reserve as of September 27 to back preferred dividends and interest obligations as financial institutions revise targets for Strategy.
- STRC recovered to $99.4, near its $100 par value, up from a low of $75 earlier in the year.
- Remaining STRC preferred stock capacity has held flat at $17.51 billion since May 17.
- Recent Bitcoin purchases were funded by MSTR common stock, including 4,603 BTC and 1,665 BTC acquisitions.
- Strategy held a $5.02 billion USD Reserve as of September 27 to support debt service and dividends.
Why It Matters
This shift in corporate capital raising highlights how institutional digital asset treasuries must adapt when secondary fixed-income instruments hit structural limits. While critics argue that stalled preferred share sales restrict financial leverage, Strategy's successful pivot to MSTR equity offerings demonstrates continued access to market capital. Market participants should monitor whether equity dilution from common stock sales impacts investor appetite during wider Bitcoin price consolidation.
