Key Developments
Strategy paused its Bitcoin (BTC) accumulation via STRC preferred stock after failing to raise fresh capital since Friday, marking a notable shift after two aggressive weeks of buying.
Key takeaways:
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STRC has dipped below its $100 par value, forcing Strategy to halt its Bitcoin buying spree.
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Previous STRC dips below $100 have coincided with declines in BTC prices.
The pause coincided with STRC trading below its $100 par value, a key threshold for Strategy’s at-the-market (ATM) issuance model.
STRC is a yield-focused preferred stock, which income investors buy for monthly dividends.
Market Context
Strategy typically issues new shares only when STRC trades at or above par to raise capital efficiently. When the price falls below $100, the company must offer better terms or sell at a discount, making issuance unattractive.
As a result, the funding channel shuts off, stalling STRC-backed BTC buys, which appears to be the case since Friday.
Before the pause, Strategy was in heavy accumulation mode, buying 22,337 BTC in the week ending March 15, partly funded by about $1.18 billion in STRC-linked sales.
The week before, it bought another 17,994 BTC, with roughly $377 million coming from STRC proceeds.
In total, Strategy added over 40,000 BTC in two weeks, with STRC serving as a key funding source. That’s roughly six times the total Bitcoin mined over the same two-week period.
Historically, pauses in Strategy’s STRC-driven Bitcoin accumulation aligned with short-term BTC pullbacks.
What To Watch
For instance, after STRC slipped below its $100 par value in January, Bitcoin fell nearly 40% over the next three weeks.
A similar setup in November 2025 preceded a BTC price decline of around 25%, suggesting that the latest STRC move below $100 could again raise the risk of a near-term BTC price pullback.
The chances of a drop are high as Bitcoin pulls back after testing $76,000, a level coinciding with the upper boundary of its prevailing bear flag pattern.
BTC could slide toward the $66,000–$68,000 area, which aligns with the pattern’s lower trendline support, if the correction persists this week.
A bear flag breakdown, on the other hand, risks sending the Bitcoin price to as low as $51,000.
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