Strategy has recorded a new trading volume high for its STRC perpetual preferred stock, adding fresh attention to the company’s use of structured equity products to finance Bitcoin purchases.
Summary
- Strategy’s STRC preferred stock recorded a new daily trading volume high of $1.53 billion on Thursday.
- The company could theoretically raise enough capital through STRC activity to purchase about 9,066 Bitcoin, according to STRC.live data.
According to a post from Michael Saylor, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC, reached $1.53 billion in daily liquidity on Thursday, the largest volume recorded for the instrument since launch.
“All-time high volume. $1.53B of liquidity,” Saylor said while referring to the company’s Stretch preferred stock product, which pays investors an 11.5% dividend without diluting Strategy’s common equity.
Data from the STRC.live tracker showed the trading activity could theoretically allow Strategy to raise roughly $735.4 million through its at-the-market issuance structure, enough to acquire about 9,066 Bitcoin at current prices. No announcement confirming a new Bitcoin purchase has been made by the company.
Since March, Strategy has accelerated the pace of its Bitcoin accumulation campaign after a relatively quieter February. Company disclosures show the firm has acquired 101,147 Bitcoin since March, including 56,770 Bitcoin purchased after April alone.
Structured products tied to Bitcoin buying
Over the past few months, perpetual preferred stocks have started gaining traction among corporate Bitcoin treasury firms as traditional fundraising routes become harder to access during the current crypto downturn. Senior convertible notes and at-the-market equity sales have faced weaker investor appetite, pushing several companies toward income-focused instruments linked to Bitcoin exposure.
Earlier in May, during Strategy’s Q1 earnings call, Saylor said the company intends to turn Stretch into the “biggest credit instrument in the world,” while continuing to use proceeds from the product to support Bitcoin acquisitions.
A May 14 report from K33 Research director Vetle Lunde stated that STRC’s structure may already be influencing Bitcoin liquidity cycles around the middle of each month. According to the report, the preferred stock’s dividend schedule and ex-dividend timing create recurring periods where Strategy can issue shares above par value and redirect proceeds into Bitcoin purchases.
K33 data cited in the report showed Strategy-linked purchases through STRC climbed from 4,467 Bitcoin in January to nearly 46,872 Bitcoin in April. Lunde also noted that the pace of STRC returning to its $100 par value had slowed recently, with only around 1 Bitcoin added through the mechanism in the latest observed period, a sign that investor demand for the instrument may be cooling.
Outside Strategy, other Bitcoin treasury firms have also started experimenting with similar financing structures.
On Thursday, Strive announced that investors in its Variable Rate Series A Perpetual Preferred Stock, SATA, would begin receiving daily dividend payments starting June 16. The schedule differs from Strategy’s monthly payout structure tied to Stretch.
Meanwhile, Tokyo-based Metaplanet has raised funds through perpetual preferred stock offerings, including MARS and MERCURY, as part of its Bitcoin acquisition strategy.
Nearly 200 public companies currently hold Bitcoin on their balance sheets. Strategy still controls the largest corporate treasury position, with 818,869 Bitcoin valued at roughly $66.5 billion based on current market prices.
Bitcoin’s recent recovery above $81,000 has also pushed the asset beyond Strategy’s average purchase price of $75,543, leaving the company’s holdings up about 7.2% on paper.
