Strategy's aggressive bitcoin (BTC) accumulation, increasingly enabled by its STRC perpetual preferred stock, is introducing structural risks tied to market sentiment and pricing dynamics, according to research and brokerage firm K33.

In its latest acquisition announcement on Monday, Strategy said proceeds from at-the-market sales of STRC accounted for approximately $1.18 billion of its $1.57 billion in bitcoin purchases last week, compared to $396 million from its Class A common stock, (MSTR).

STRC is a perpetual preferred share designed to trade near $100 while offering a variable monthly dividend, currently around 11.5% annualized. The instrument allows Strategy to raise capital and convert investor demand for yield into bitcoin purchases, but its stability depends on maintaining that target price and continued market confidence, Head of Research Vetle Lunde wrote in a new report.

Lunde warned that risks extend beyond bitcoin's price. STRC holders face capped upside through dividends but potential downside during market drawdowns, with the instrument already experiencing multiple declines of 5% to 10%. If STRC trades below its target level for a prolonged period, confidence in its "return to par" dynamic could weaken, shifting its behavior from a perceived stable yield product toward a more credit-like risk profile, Lunde said.

These risks are compounded by broader dependencies in the structure, according to the report. The model requires both STRC to remain near its target price and Strategy’s equity to trade at a premium to net asset value — conditions that are largely sentiment-driven and could deteriorate simultaneously in weaker markets, K33 said. While the company holds roughly $2.25 billion in cash — enough to cover about 25 months of dividends — Lunde highlighted the added complexity compared to direct spot bitcoin exposure, which avoids these dependencies.

"That said, this structure can still support incremental demand for bitcoin in favorable conditions, and we do not view it as an immediate systemic risk to BTC due to MSTR's strong cash cushion," he added.

STRC-fueled buying spree and market impact

Despite these risks, the structure has enabled significant accumulation. Strategy has added 40,331 BTC over a two-week period, its fourth-largest such purchase over that timeframe on record, with 55% of the $2.85 billion raised coming from STRC. Last week's 22,337 BTC purchase was also a top-five weekly acquisition for the firm.

In stronger markets, Lunde said the mechanism creates a feedback loop in which capital raised through STRC issuance supports continued bitcoin buying. When the instrument trades near its target level, Strategy can issue new shares and deploy proceeds into BTC, often alongside common equity issuance to manage leverage and balance sheet optics.

Bitcoin's broader market performance has also reinforced the narrative, according to the analyst. Since the market close on Feb. 27, the asset has risen roughly 13%, while the Nasdaq and S&P 500 declined and gold posted deeper losses amid the ongoing war in Iran.

K33 attributes this relative strength in part to prior positioning. Following months of underperformance, including a roughly 50% drawdown, bitcoin was "underowned, overshorted, and oversold," Lunde wrote, reducing selling pressure and supporting a rebound as investors reassess its role as a scarce alternative asset.