Twelve of Strategy's fifteen largest institutional shareholders increased their MSTR positions during the second quarter, adding a net of roughly $695 million to their combined stakes. The buying came as the stock swung from a high near $195 to a June close of $86.93, and as the company's preferred stock struggled to hold its value.
Who bought
Goldman Sachs led the charge, boosting its MSTR stake by about $407 million. Capital International Investors added $346 million, and two BlackRock-related firms together increased their holdings by more than $170 million. Not all of that buying was an active bet on Strategy or Bitcoin — some of it likely reflects passive or index-linked flows. Still, the net addition of roughly $695 million shows that big money was willing to step in during a volatile quarter.
As of June 30, Vanguard Portfolio Management held about $1.54 billion in MSTR, Vanguard Capital Management held $1.49 billion, BlackRock Institutional Trust held $1.27 billion, and State Street Investment Management held $753 million.
The preferred stock problem
While MSTR shareholders were adding, the company's preferred stock, STRC, was sliding. It fell below $80, prompting Strategy to raise the annual dividend from 9% to 12%, shift to twice-monthly payments, and build a larger dollar reserve. The company also sold over $2 billion in MSTR and Bitcoin, repurchased roughly $347 million of STRC, and lifted its dollar reserve to $4.8 billion.
Despite the higher dividend and buybacks, STRC remained below $95 this week. Management says it's committed to restoring par, but the market isn't convinced yet.
The MSCI threat
There's another overhang. MSCI is considering a methodology to identify 'non-operating companies' that could exclude Strategy, Metaplanet, and Yellow Cake from global equity indexes. Strategy estimates that exclusion could create selling pressure equivalent to as much as 4% of MSTR shares. Not all institutional holdings are tied directly to MSCI benchmarks, but exclusion would likely weaken passive demand for the stock.
The company's own chart shows $1.3 billion added by 12 buyers and $609 million reduced by three firms, netting about $695 million. That's the number that matters, and it's positive. But with STRC still trading below par and MSCI's decision pending, the second half of the year is shaping up to be a test of whether Strategy can hold onto its institutional base.
