Strategy Eyes 850,000 BTC by 2027 Using Preferred Shares

- Strategy is using perpetual preferred shares with fixed dividends to finance its ambitious bitcoin acquisition plan. - Strong market interest and buy ratings from TD Cowen support this goal. Strategy has introduced a set of perpetual preferred shares with attractive fixed dividend yields as part of its "42/42" plan to acquire more than 850,000 bitcoin (BTC) by 2027. On July 2, 2025, The Block reported that Strategy aims to raise $84 billion through equity and convertible offerings to fund this accumulation. TD Cowen has issued buy ratings for these shares, citing their income potential and lower volatility compared to the firm’s common stock. According to The Block on July 2, the perpetual preferred shares include three distinct series: STRK, STRF, and STRD. The convertible STRK shares carry an 8% fixed dividend. In contrast, the STRF and STRD shares are non-convertible; STRF shares offer a fixed cumulative annual dividend of 10%, while STRD shares offer a non-cumulative annual dividend of 10%. Strategy will use the funds from these offerings to immediately convert equity sales into additional BTC per share, fueling its aggressive acquisition strategy. In the second quarter of 2025, Strategy added 69,140 bitcoins to its holdings, bringing its total BTC reserves to 597,325. As a result, TD Cowen forecasts that the company will hold over 850,000 BTC by the end of 2027, which is approximately 4% of bitcoin’s fixed supply. The investment bank also maintained its buy rating on Strategy's common stock (MSTR), highlighting the stock’s 34.7% year-to-date price increase and its 63% trading premium compared to its net asset value. TD Cowen analysts set a $590 price target for the stock, noting that the firm's innovative equity-to-BTC conversion model is a key driver of market interest. According to CoinMarketCap data from July 2, 2025, at 19:09 UTC, Bitcoin (BTC) is trading at $109,480.75. This price reflects a 3.7% increase over the last 24 hours.