STRC at $100: How Strategy just invented Bitcoin credit

Hello and welcome to Bitcoin Balance Sheet, the twice weekly email from Bitcoin Treasuries, where we track the latest in corporate Bitcoin buying.

Each Monday, you'll receive a quick blast on the top buyers over the last week. We'll follow that up every Friday with digest and analysis. Enjoy!

Bitcoin: A Competitive Advantage

Friday, 21 November 2025 — The West Mill, Derby, UK. Hosted by The Bitcoin Collective

This isn’t another marathon of panels and jargon. It’s a focused gathering for entrepreneurs, investors, and executives ready to see how Bitcoin can protect businesses against inflation, currency risk, and policy uncertainty.

Inside a beautifully restored 19th-century cotton mill, you’ll spend a full afternoon and evening learning and connecting with 200 operators, founders, and investors.

Sessions are concise, breaks are deliberate, and networking carries through a buffet lunch, coffee chats, and a three-course dinner where the best conversations happen.

On Stage:

• Liz Truss — Former British Prime Minister

• Peter McCormack — Chairman, Real Bedford Football Club

• Sam Roberts — Cartwright, advised the first UK pension firm to buy Bitcoin

• Joe Bryan — Author: “What’s The Problem?”

Walk away with: strategies to protect your balance sheet from inflation and FX shocks, insights on why UK firms are quietly adding Bitcoin to their treasuries, a regulatory outlook shaping European capital markets.

Subscriber Perk: Bitcoin Treasuries readers save 10% with code DOTNET.

Seats are limited — secure your advantage before the premium closes.

October Corporate Bitcoin Adoption Report

BitcoinTreasuries.net has released the October 2025 Corporate Bitcoin Adoption Report, delivering fresh insights and high-frequency data on public company digital asset strategies, treasury exposures, and innovation across credit, yield, and asset allocation.

This report covers real-time changes in aggregate Bitcoin holdings, monthly treasury flows, and sector momentum so investors and analysts can follow shifts in market leadership or see portfolio concentration change as new catalysts develop.

Explore the report:

Get detailed breakouts by company, sector, and region, plus track the evolution of key metrics like total BTC held, diversification into ETH/SOL, treasury-to-market value ratios, and benchmark against S&P 500 and other major indices.

See our coverage in Forbes, CoinTelegraph, Bitcoin.com, Decrypt and more.

A Zero-to-One Moment for Strategy

Strategy just proved that Bitcoin treasury finance has permanently evolved beyond equity dilution.

Just last week, the company bought $50 million worth of Bitcoin almost entirely through preferred stock issuance — with 52% (around $26 million) coming from STRC, its Variable Rate Series A Perpetual Stretch Preferred Stock — without selling a single share of common MSTR stock. It’s the first of its kind since it launched its preferred equity program in July.

This marks the birth of “Bitcoin Credit,” an institutional-grade fixed-income securities backed by Bitcoin collateral that has the potential to unlock capital from investors who cannot participate through equity markets.

Moreover, the significance extends far beyond the $50 million capital raise. Strategy’s November 3-9 securities filing reveals the company sold 262,311 shares of STRC at par value, generating $26.2 million in net proceeds. Simultaneously, it issued STRF ($18.3 million), STRK ($4.5 million), and STRD ($1 million ) preferred tranches while selling zero MSTR common shares.

This capital structure — 100% preferred equity, 0% common stock — demonstrates that Michael Saylor’s multi-year build toward permanent capital markets infrastructure has finally reached operational maturity. Instead of diluting common shareholders, the company can now fund its Bitcoin purchases indefinitely through fixed-income securities that pay 8% to 10% dividends to investors.

STRC’s role as the dominant funding source validates recent market developments. Just days before the firm’s latest capital raise, STRC broke through $100 par value for the first time, closing at $100.01 with record trading volume.

ZynxBTC called it “the iPhone moment,” claiming “$1 trillion will pour into STRC over the next 10 years.” That statement seemed like typical promotional hyperbole until this filing proved STRC now functions as Strategy’s primary capital raising vehicle. The preferred stock trading at or above par creates liquid secondary market demand, allowing the company to issue new shares to institutional investors who are confident they can exit positions without taking losses below face value.

Track real-time mNAV, preferred equity data, and Bitcoin accumulation trends across every tranche of STRC, STRF, STRK, and STRD.

Capital markets mechanics reveal why this matters. Traditional institutional fixed-income investors — pension funds managing liability-matching portfolios, insurance companies meeting reserve requirements, bond mutual funds operating under explicit mandates — cannot buy MSTR common stock regardless of their conviction about Bitcoin. The main reason is because investment policies explicitly restrict equity purchases, limiting allocations to investment-grade bonds, high-yield debt, and preferred securities meeting specific criteria.

A $100 billion pension fund might allocate 60% to fixed income and 40% to equities, but the fixed-income mandate prohibits it from buying even the highest-quality common stock.

STRC solves this structural barrier. As a perpetual preferred equity that pays out variable-rate dividends while trading at par, STRC qualifies for fixed-income allocations despite providing indirect Bitcoin exposure. The security pays quarterly dividends, offers priority claim over common shareholders in liquidation scenarios, and trades on public markets with daily liquidity.

For fixed-income portfolio managers seeking Bitcoin exposure without violating their mandates, STRC represents the only viable option beyond Bitcoin ETFs. And unlike spot ETFs that simply track price, STRC provides both yield and exposure to Strategy’s systematic accumulation strategy.

AnchorWatch 

AnchorWatch makes Bitcoin ownership safer and easier by combining advanced custody expertise with industry-grade insurance. As a Lloyd’s of London Coverholder, it writers specialized policies that address digital-asset risks, giving clients trusted coverage and peace of mind.

For more information: 

The addressable market is enormous. Global fixed-income asset management totaled approximately $78 trillion in 2025 according to industry research, dwarfing the equity markets that have driven MSTR’s valuation to date. U.S. institutional investors alone manage over $30 trillion in fixed-income assets across pension funds, insurance companies, endowments, and bond funds. Even if just 0.5% of that capital eventually allocate to Bitcoin-backed preferred securities, that figure rises to $150 billion in potential demand — roughly double Strategy’s current $77 billion market cap.

Strategy’s capital raise demonstrates the feedback loop Saylor has engineered. The company issues preferred equity (STRC, STRF, STRK, STRD) to raise capital, uses proceeds to buy Bitcoin, which increases the net asset value that backs the preferred securities, to then supports continued issuance at par or premium, enabling more Bitcoin purchases.

As long as Bitcoin appreciates or remains stable, this cycle perpetuates indefinitely. The preferred dividends are funded through additional preferred issuance or eventual common equity raises when MSTR trades at sufficient premium, creating a self-sustaining capital structure that doesn’t require selling Bitcoin.

The risks mirror the rewards. If Bitcoin crashes severely, Strategy’s ability to pay preferred dividends becomes strained. While the company can defer dividends on all preferred tranches, doing so triggers penalties. Some clauses grant preferred holders board seats after four consecutive quarters of missed payments, while others accrue compounding interest on deferred amounts at higher rates.

Compare Strategy’s fixed-income Bitcoin model against MARA, Metaplanet, and other treasuries in our live dashboard.

Meanwhile, a prolonged Bitcoin bear market could force Strategy to sell holdings at depressed prices or restructure preferred securities in ways investors might consider tantamount to default, destroying the credibility that makes the entire structure function.

Other Bitcoin treasuries will likely replicate this playbook. MARA Holdings, Riot Platforms, Metaplanet, and every serious accumulator now has proof that preferred equity works as a key funding source. The race begins to establish liquid preferred securities with institutional acceptance before markets become saturated.

First movers like Strategy benefit from name recognition and trading volume that creates self-reinforcing liquidity, but competitors with strong operational businesses (MARA’s mining cash flow, Coinbase’s exchange revenue) could argue for lower dividend rates based on their reduced risk profiles.

Strategy’s $50 million raise — with 52% from STRC and zero common stock dilution — transforms Bitcoin treasury finance from an equity story to a fixed-income asset class. The institutional capital that couldn’t participate before now has access. Still, whether this represents genius financial engineering that permanently alters corporate treasury management or 2008-style structured finance that unwinds catastrophically depends entirely on one variable: does Bitcoin go up?

Join us at the following events:

• Bitcoin Treasuries Digital Conference. On November 20, join prolific podcaster Tim Kotzman and other top leaders from the Bitcoin Treasuries ecosystem for an exclusive digital conference covering the latest in corporate Bitcoin adoption trends, strategies, and data. Expect insightful interviews, real-world case studies, and interactive sessions with experts shaping how capital is stored and managed in Bitcoin. Get tickets at: Bitcoin Treasuries Digital Conference

• Bitcoin: A Competitive Advantage. Join us on November 21, and unlock high-impact business insights and real-world strategies for leveraging Bitcoin as a competitive edge, at an intimate, curated event in Derby’s stunning West Mill venue. Meet pioneering leaders and institutional innovators driving Bitcoin adoption — plus enjoy focused panels, networking, and a community dinner designed for true connections. Take 10% off tickets with the discount code ‘DOTNET’ at Bitcoin: A Competitive Advantage

• Wall Street Bets Live. WallStreetBets Live is a major three-day event taking place January 28–30, 2026, at the Miami Beach Convention Center, where traders, builders, and meme creators from the internet’s most notorious finance communities gather for networking, live talks, and entertainment. Get tickets here: Wall Street Bets Live

• Bitcoin Investor Week. Join us February 9–13 in NYC for Bitcoin Investor Week 2026 — the world’s largest gathering of Bitcoin investors and institutional leaders. Hosted by Anthony Pompliano, the event brings together allocators, hedge fund managers, family offices, executives, and policymakers for a high-conviction look at Bitcoin’s role in global markets. Get 15% off GA tickets with code DOTNET here: Bitcoin Investor Week

Special thanks to our partners:

• o21 Solutions. o21 develops and implements Bitcoin-powered corporate strategy, transforming value chains with strategic expertise and tailored advisory services, with a focus on both Treasury and Operations - balance sheet accumulation, mining, and payments. Reduce cycle time through the corporate Bitcoin adoption journey through our pre-packaged or tailored engagements. Learn more: o21 Solutions

• Cryptio. Cryptio is an enterprise-grade accounting software platform built specifically for digital assets and cryptocurrencies. It enables businesses to transform blockchain transaction data from multiple exchanges and custodians into auditable financial records, supporting compliance with GAAP and IFRS standards. Learn more: Cryptio

• AnchorWatch. AnchorWatch makes Bitcoin ownership safer and easier by combining advanced custody expertise with industry-grade insurance. As a Lloyd’s of London Coverholder, it writers specialized policies that address digital-asset risks, giving clients trusted coverage and peace of mind. Learn more: AnchorWatch

• Stacking Sats Inc. Official IT partner at BitcoinTreasuries, Stacking Sats Inc via its subsidiary, Framework IT, is a managed IT services firm with a 17-year track record of providing bet-in-class IT support, strategy, and cybersecurity, boasting high recurring revenue and long-term client contracts. It’s also one of the top 20 holders of Bitcoin among global private companies. Learn more: Stacking Sats Inc

• Orange Wheel Advisors. Orange Wheel Advisors is a strategic consulting firm that helps companies navigate Bitcoin’s impact on corporate finance and competitive strategy. With expertise spanning treasury management, payments, capital structure, mining, and investor communications, they provide executive education, tailored strategies, and execution support to guide businesses through the global monetary transition. Learn more: Orange Wheel Advisors

• Secure Digital Markets (SDM) provides unparalleled liquidity, execution speed, and bespoke customer service, making it the top choice for institutional investors seeking reliable digital asset trading solutions. With deep expertise in capital markets and strict regulatory standards, SDM stands out as the premier platform for all digital asset treasury teams looking to optimize their trading and treasury operations. Learn more: Secure Digital Markets (SDM)

Over To You: What Do You Track?

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