Since 2025, Strategy has continuously issued the STRK, STRF, STRD, and STRC series of preferred stocks, raising billions of dollars specifically to increase Bitcoin holdings, forming a "Digital Credit" capital stack, avoiding excessive dilution of common stock MSTR, while using Bitcoin reserves as implicit collateral for preferred stocks.

The funding path is clear: cash raised from preferred stocks is directly used to purchase Bitcoin, which then appreciates and covers the dividends and debt interest of the preferred stocks; STRC, as a variable rate instrument, can dynamically adjust dividends to maintain near-par trading, becoming the main engine for balance sheet expansion, while STRF provides the highest level of protection, overall reducing capital costs and extending the holding duration of Bitcoin.

A similar path can be seen in the early stages of MicroStrategy's convertible bond financing for Bitcoin purchases, as well as in some current structured products attempted by Bitcoin treasury companies; currently, Strategy has moved from simply leveraging Bitcoin purchases to a "credit productization" phase, with the scale of preferred stocks exceeding debt, and the industry is transitioning from expanding reserves to controlling capital structure and pricing power.

Essentially, this represents a transfer of pricing power: traditional credit market pricing relies on the issuer's cash flow and rating agencies, while Strategy reconstructs the pricing anchor using Bitcoin reserves and publicly available BTC Floor/ARR models, creating alternative pressure on traditional fixed income in terms of after-tax returns and downside protection, with the mechanism being that Bitcoin's high volatility and long-term expected returns are structured into quantifiable credit products.

ABAB News · Cognitive Laws

Collateral determines pricing power, not credit rating
Variable returns are an invisible leverage for stable prices
The more layered the capital stack, the more tradable the risk