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    Home » How Strategy keeps buying Bitcoin during market downturns

    How Strategy keeps buying Bitcoin during market downturns

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    By ethan on December 30, 2025 Companies
    Sleek treasury office with a Bitcoin hologram, rising charts, and a strategist outlining a buy plan at a glass desk.
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    Strategy keeps buying Bitcoin through a series of coordinated capital-raising programs designed to convert market volatility into a steady funding stream. The company unveiled the ’21/21 Plan’ in October 2024 to secure $42 billion by 2027 and has continued aggressive purchases even during price pullbacks.

    The ’21/21 Plan’ splits the $42 billion target into $21 billion from equity and $21 billion from fixed-income instruments, creating a multi-year blueprint to finance Bitcoin accumulation. As part of that equity pillar, Strategy launched a $21 billion at-the-market (ATM) common stock program announced by May 2025 to channel investor demand directly into treasury purchases.

    Recent activity shows the trade-off implicit in that approach: 94% of recent Bitcoin purchases were funded through stock dilution, and the company issued 3.2 million new shares since August to underwrite those buys. This mix of repeated share offerings keeps cash flow available for purchases while increasing outstanding shares for existing holders.

    Strategy has broadened its financing palette to include multiple preferred stock issues and convertible securities to attract yield-seeking capital. Its 8.00% Series A Perpetual Strike Preferred Stock (STRK) pays an 8% annual dividend and was a central instrument in a reported preferred-stock offering in 2025.

    Financial mechanics and market implications for Strategy plan

    Other instruments include a 10.00% Series A Perpetual Stride Preferred Stock (STRD), a variable-rate preferred (STRC) with a 9% initial dividend, and a senior Perpetual Strife Preferred Stock (STRF) yielding 9.1%. Collectively, preferred sales have raised billions, with a notable $2 billion preferred equity sale in 2025 explicitly earmarked for Bitcoin purchases.

    In parallel, Strategy issued convertible debt with unusually low financing costs — in some cases low or 0% interest — drawing $8.2 billion of capital that the company designated for Bitcoin acquisition. These instruments appeal to investors who accept fixed income characteristics or optional equity upside in exchange for funding a high-conviction treasury strategy.

    Strategy’s approach converts market drawdowns into buying opportunities by securing committed capital through equity dilution, high-yield preferreds and convertible debt rather than relying on cash flow from operations. That engineering sustains steady accumulation in down markets while shifting near-term financial risk onto existing equity holders through dilution and onto creditors who accept structured yields or conversion optionality.

    The company’s repositioning as a Digital Asset Treasury Company (DATCO) underscores a business model built around treating Bitcoin as a strategic treasury asset rather than a short-term trading position.

    Strategy is executing a multi-instrument financing program that allows continued Bitcoin purchases through downturns, with a tangible next milestone: the ’21/21 Plan’ aims to raise $42 billion by 2027.

    Bitcoin Featured Series A Perpetual Stride Preferred Stock Strategy
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    ethan

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