Susie Ward, head of Bitcoin Policy UK, has criticized a recent presentation by Michael Saylor, arguing it misrepresented the risks associated with STRC, a dividend-paying preferred share used to finance bitcoin purchases. Speaking at the BTC Prague conference, Ward said the 11.25% yield instrument was portrayed in a way that did not fully reflect its risk exposure.
Criticism emerges over Saylor’s funding strategy
Ward’s comments have fueled a broader debate over how STRC has been marketed to investors. While the instrument offers an attractive yield, critics contend that its risk profile is often underplayed, particularly in relation to bitcoin’s volatility and the company’s leveraged exposure to the asset.
STRC structure tied to bitcoin accumulation
The perpetual preferred shares have become a core component of Saylor’s strategy to expand bitcoin holdings. Capital raised through STRC issuances is directly used to acquire more bitcoin, increasing the company’s exposure to price movements of the cryptocurrency.
The firm recently added 1,587 bitcoins valued at around $100 million, with an average purchase price of $63,024 per coin. This brings total holdings to 846,842 bitcoins, maintaining its position as the largest corporate holder of the asset.
Market downturn amplifies pressure
Bitcoin’s nearly 50% decline from its October 2025 peak has added pressure to companies closely tied to its performance. Shares of Saylor’s company have dropped more than 60% over the past year and were trading near $132 on Monday, significantly below their 52-week high of $457.22.
At current prices, the company’s total bitcoin holdings carry an unrealized loss of roughly $8 billion, based on an average acquisition cost of $75,656 per coin.
Concerns over dilution and sustainability
Ward argued that funding bitcoin purchases through equity and debt instruments weakens the asset’s scarcity narrative. She said repeated share issuance to finance acquisitions can dilute existing shareholders, creating tension between corporate financial strategies and bitcoin’s fixed supply appeal.
She also pointed to a broader trend, noting that several companies adopted similar treasury strategies during last year’s rally, often using traditional financial instruments to fund purchases. Many of these stocks have since mirrored bitcoin’s volatility, rising sharply before experiencing steep declines.
Dividend obligations add financial strain
The STRC preferred shares carry a variable dividend, currently around 11.5%, requiring ongoing payouts. This obligation recently led the company to sell 32 bitcoins, marking its first sale in more than three years, in order to meet dividend commitments.
Saylor defended the move, stating that his long-standing “never sell” stance was intended for individuals rather than corporations with recurring financial obligations. Shortly after the sale, the firm resumed buying, funding additional purchases through the sale of approximately 1.73 million common shares.
Strategy remains tied to bitcoin trajectory
The company’s approach has drawn mixed reactions across the market. While some expect its equity to rise alongside any future bitcoin recovery, the strategy tightly couples its financial health to the cryptocurrency’s price direction.
Ward’s critique highlights the underlying tension in using expandable financial instruments to accumulate a finite asset. As market conditions remain uncertain, the sustainability of this model will depend largely on bitcoin’s performance and the company’s ability to manage the costs tied to its funding mechanisms.
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