Strategy's Perpetual Bitcoin Buying Machine Hums Along

Strategy's Michael Saylor claims to have created a perpetual motion machine for buying Bitcoin. The company issues its Variable Rate Series A Perpetual Stretch Preferred Stock, STRC, which has a variable dividend rate that adjusts monthly based on market conditions and Bitcoin's performance.

The current dividend rate is 12% as of July 2026, making it attractive to income-focused investors who want crypto exposure without the full volatility roller coaster. Strategy issues STRC to raise capital, uses that capital to buy more BTC, and then pays dividends on the preferred stock.

Some of those dividend payments get funded by selling small amounts of BTC. But Saylor's math suggests that as long as Bitcoin appreciates at least 2.3% annually, the new BTC purchased with STRC proceeds exceeds whatever gets sold to fund dividends.

This perpetual buying framework relies on Strategy holding no more than 2.3% of its Bitcoin holdings in STRC. If this condition is met, the company will always end up with more Bitcoin than it started with. As of early August 2026, Strategy holds approximately 842,000 BTC and has a USD reserve approaching $4 billion.

The STRC instrument frequently trades around its $100 par value, which determines how much capital each share issuance generates. During periods of heightened demand, issuance rates of STRC have reached double-digit percentages, suggesting strong market appetite for the instrument.