Strategy has stopped adding to its Bitcoin (BTC) position after its preferred stock STRC slipped below the $100 par threshold, ending two weeks of heavy accumulation that had been funded largely by STRC issuance.
Why the pause happened
STRC is a yield-focused preferred share used by income investors and by Strategy’s at-the-market (ATM) issuance program to raise capital. The company typically issues new STRC only when the stock trades at or above $100 par so it can raise funds without large discounts. Once STRC trades under $100, issuance becomes unattractive or requires selling at a discount, effectively shutting off that funding channel. STRC fell below par late last week, and Strategy has paused BTC purchases since then.
Recent accumulation and funding
In the two weeks before the pause, Strategy bought more than 40,000 BTC. Specifically, it purchased 22,337 BTC in the week ending March 15, funded in part by roughly $1.18 billion in STRC-related proceeds, and 17,994 BTC the prior week, supported by about $377 million from STRC sales. Over that span, STRC-linked capital was a major source of funds—several times the amount of newly mined Bitcoin during the same period.
Historical patterns and price implications
Past episodes when STRC dipped below par have coincided with near-term BTC pullbacks. After a January STRC drop under $100, Bitcoin fell nearly 40% over the following three weeks. A similar STRC weakness in November 2025 preceded a roughly 25% BTC decline. Those precedents suggest that a renewed STRC funding halt raises the odds of a short-term Bitcoin correction.
Technical outlook
Bitcoin recently tested roughly $76,000, near the upper boundary of a prevailing bear-flag pattern. If BTC’s pullback continues, a logical target is the pattern’s lower trendline around $66,000–$68,000. A decisive breakdown of the bear-flag structure could push prices significantly lower, with downside scenarios reaching toward about $51,000.
What this means
With STRC issuance paused, Strategy’s STRC-funded buying is temporarily offline, removing a predictable source of demand. Given historical correlations and current technicals, the risk of a near-term BTC pullback has increased, though outcomes depend on other market forces and broader liquidity conditions.
Not financial advice
This summary is for informational purposes only and is not investment advice. All investing and trading involve risk. Do your own research before making financial decisions.