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Strategy's preferred shares show strong demand, signaling confidence in its Bitcoin bank model.

Analyst Insights
12 May 2026
Seeking Alpha
View Source
Bullish
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Strategy Inc's four perpetual preferred shares have seen exceptional demand, with STRC alone oversubscribed five times, raising $2.5 billion. This strong institutional interest supports the company's shift toward a Bitcoin bank model, justifying a long-term market NAV premium. Despite Bitcoin and Strategy's shares lagging the recent equity rally, this creates a rare buying opportunity with a price target of $480–$500 based on a re-rating to a 2.80x market NAV premium. The main risk is that prolonged Bitcoin declines could trigger liquidation due to the company's growing financial obligations, making this a pure Bitcoin bullish investment thesis.

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