For years, Strategy has bought Bitcoin using two tools: selling new common shares and benefiting from a rising Bitcoin price. On the company’s third-quarter 2026 earnings call, Executive Chairman Michael Saylor said it may no longer need either.
Saylor’s proposal is for Strategy to create between $10 billion and $30 billion in what it calls “digital credit,”, backed by its existing balance sheet. For a company whose identity is built around “buy more Bitcoin,”, this would change how it finances its purchases.
What Saylor and Le actually laid out
Saylor described the $10 billion to $30 billion range as financing capacity. The plan would require neither new common-stock issuance nor further gains in Bitcoin’s price.
The $30 billion figure reflects the company’s assessment of its financial structure and Bitcoin holdings. It is not a fundraising target that Strategy plans to reach immediately.
CEO Phong Le explained how the plan would work. He said Strategy’s main way of acquiring more Bitcoin going forward will be issuing preferred securities, particularly perpetual preferred shares such as STRC.
Perpetual preferred shares fall between bonds and common stock. Holders receive a fixed dividend and rank ahead of common shareholders, but they have no voting rights and the shares have no maturity date. STRC is designed to pay double-digit yields and serve as a steadier alternative to holding Bitcoin directly.
The numbers behind the confidence
As of October 25, 2026, Strategy held 848,517 BTC, up 26% for the year.
The company also reported about $5.07 billion in dollar assets. According to Strategy’s calculations, that reserve could cover preferred dividends and debt interest for roughly 3.4 years.
Strategy reported third-quarter net income of $19.53 billion, largely driven by a $20.91 billion gain on its digital assets.
Strategy already has a sizeable presence in this market, with $16 billion in notional digital credit securities outstanding across ten listed instruments. The top end of Saylor’s proposed range would exceed the total amount it has issued in this category to date.
From software firm to Bitcoin capital machine
Strategy began as a traditional software company and has become one of the most prominent corporate Bitcoin treasury firms.
The company now describes its capital approach in layers: digital capital, digital equity and digital credit. Bitcoin forms the base layer, common stock the equity layer, and preferred instruments the credit layer, which the company now wants to rely on most heavily.
The shift also marks a move away from two funding sources that defined earlier Bitcoin purchases: at-the-market (ATM) equity sales and convertible debt. ATM programs let companies sell shares gradually into the market. Preferred shares avoid some of the same issues: they do not add common shares, and perpetual instruments never come due. The trade-off is an ongoing dividend obligation, payable regardless of Bitcoin’s price.
What the plan means for shareholders, credit buyers and Bitcoin
For common shareholders, the clearest potential benefit is less dilution. If preferred issuance replaces ATM sales as Strategy’s main funding channel, existing holders may have their ownership diluted less with each Bitcoin purchase. However, their claim ranks behind a growing group of preferred holders, who are paid first.
For preferred buyers, the offer is yield backed by a large Bitcoin position and a cash reserve covering several years. The 3.4-year coverage estimate is based on current obligations. Issuing billions more in preferred securities would increase the annual dividend bill.
Preferred buyers should also consider the reported earnings. A $19.53 billion quarter, driven by a $20.91 billion gain on digital assets, illustrates how closely Strategy’s results track Bitcoin.
