The change comes as the company's traditional equity-based funding approach appears to have become less effective. Strategy had previously relied on issuing common shares, supported by a premium between its stock price and Bitcoin that helped limit dilution during stronger market conditions. That premium has narrowed following Bitcoin's decline from its October peak, which has increased investor sensitivity to dilution. In response, the company has leaned more heavily on preferred shares, which are not dilutive to common shareholders but carry an 11.5% dividend tied to its STRC securities.

This shift introduces a different balance of trade-offs. While it may reduce dilution concerns, it adds fixed financial obligations that could increase pressure during periods of crypto volatility. Strategy had earlier built a $2.25 billion cash reserve during a prior downturn to help manage liquidity risks, and it remains one of the few significant buyers in the current environment as other corporate holders and high net worth individuals reduce exposure. The company holds about $55 billion worth of Bitcoin, while its shares are down roughly 56% over the past year despite a recent 1.6% gain to $130.22, as Bitcoin rose less than 1% to $71,800.
source: https://www.tradingview.com/news/gurufocus:34e47c757094b:0-strategy-funds-1-billion-bitcoin-purchase-using-preferred-shares-for-first-time/