CEO Phong Le Bought 11,000 Shares of MicroStrategy Preferred Stock as STRC Hit All-Time Lows

Strategy (MSTR) CEO Phong Le is sending a notable signal to investors as he steps in to buy shares of the company’s preferred stock during a period of intense pressure. In one of the most closely watched insider transactions recently, Le purchased 11,000 shares of Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for $998,756 as the security traded near record lows, with the purchase executed at prices around $90.66 to $90.87 per share.

The move comes as investors reassess Strategy’s capital structure, Bitcoin (BTCUSD), exposure, and the sustainability of its preferred-stock strategy, making Le’s insider purchase a key development for shareholders watching whether STRC’s recent weakness represents a risk or a potential opportunity.

About Strategy Stock

Formerly known as MicroStrategy, Strategy is a business intelligence software company that has transformed itself into a Bitcoin-focused treasury company. Headquartered in Tysons Corner, Virginia, Strategy develops enterprise analytics software while using Bitcoin as its primary treasury reserve asset. The company has a market cap of $31.1 billion. Strategy has built one of the largest corporate Bitcoin holdings globally, with its business model increasingly centered on acquiring and holding Bitcoin through equity and preferred stock offerings.

As part of this capital strategy, Strategy launched STRC (Variable Rate Series A Perpetual Stretch Preferred Stock), a preferred security designed to provide investors with a yield-focused alternative to MSTR common shares while helping the company raise capital for its Bitcoin strategy.

Strategy shares have been under significant pressure as investors reassess the company’s Bitcoin-focused strategy amid a sharp decline in cryptocurrency markets. The stock, which previously traded last July at a 52-week high of $457.22, has fallen dramatically, recently hitting a low of $81.81 on June 26. MSTR has declined 78.7% from its 52-week high and is down 74.8% over the past year.

The recent sell-off has accelerated in 2026, with MSTR facing heavy selling pressure as Bitcoin weakness weighed. The stock has fallen 35.85% over the past month alone, marking one of its worst monthly performances, while concerns over dilution, capital raises, and the company’s preferred stock strategy have added to investor uncertainty. Year-to-date (YTD), MSTR shares have declined 36.76%, significantly underperforming.

The pressure has also extended to Strategy’s preferred security, STRC, which fell sharply in June and reached a low of $71.25 on June 26. It is down 10.84% YTD.

Despite the decline, the stock trades at a premium compared to industry peers at 61.37 times forward sales.

Meanwhile, Strategy’s STRC currently pays a 12% annual dividend rate, which equates to $0.50 per share on a semi-monthly basis.

Mixed Quarterly Performance

Strategy reported its first-quarter 2026 financial results on May 5. For Q1 2026, total revenue reached $124.3 million, up 11.9% year-over-year (YOY). Gross profit increased to $83.4 million, compared with $77.1 million in the prior-year period, although gross margin declined to 67.1% from 69.4%. The improvement in revenue reflected continued demand for Strategy’s enterprise analytics software, but the company’s financial results were increasingly dominated by its Bitcoin holdings rather than its legacy software operations.

The company reported a net loss of $12.54 billion, or $38.25 per share, compared with a net loss of $4.2 billion, or $16.49 per share, in Q1 2025. Operating loss also expanded to $14.5 billion, compared with $5.9 billion in Q1 2025. The significantly wider loss was primarily driven by a $14.5 billion unrealized loss on digital assets, compared with a $5.9 billion unrealized loss in the same period last year, reflecting the impact of Bitcoin price volatility on accounting results.

Strategy continued aggressively expanding its Bitcoin treasury during the quarter. As of early May 2026, the company held 818,334 Bitcoin, representing 22% growth YTD, with a reported 9.4% BTC Yield YTD. The company also raised $11.7 billion in capital YTD.

A key focus of the quarter was the growth of Strategy’s preferred stock, STRC. It generated strong investor demand, with the company reporting $5.6 billion raised through STRC, representing 189% growth YTD. In addition, Strategy reported $692.5 million in cumulative dividends declared and paid across its preferred stock offerings, highlighting the importance of digital credit as a new financing channel.

Also, the consensus EPS estimate of $116.70 for fiscal 2026 reflects an increase of 866.3%, while the EPS estimate of $74.73 for fiscal 2027 indicates a 36% decline YOY.

What Do Analysts Expect for Strategy Stock?

Last month, Cantor Fitzgerald reiterated its “Overweight” rating and $212 price target on Strategy, citing the company’s new Digital Credit Capital Framework aimed at strengthening liquidity and addressing investor concerns.

Plus, Benchmark maintained its “Buy” rating and $570 price target, with analyst Mark Palmer noting that recent weakness was driven largely by concerns surrounding the sharp decline in STRC preferred stock.

Overall, MSTR has a consensus “Strong Buy” rating. Of the 18 analysts covering the stock, 15 advise a “Strong Buy,” one suggests a “Moderate Buy,” one gives it a “Hold” rating, and one advises “Strong Sell.”

While the average analyst price target of $363.62 suggests an upside of 274.7%, the Street-high target price of $645 suggests that the stock could rally as much as 564.6%.

On the other hand, with limited analysts’ coverage on STRC, it has an overall “Strong Sell” rating.