STRC, a preferred stock product launched just eight months ago, has rapidly emerged as a popular tool for gaining exposure to Bitcoin. Last week, Strategy, the issuer of STRC, successfully raised $1.18 billion and immediately deployed nearly 22,337 BTC, a quantity more than seven times the global Bitcoin production during the same period.
STRC's capital injection and Bitcoin accumulation speed significantly surpass those of comparable products in traditional equity or fixed-income markets. Last week, STRC's weekly trading volume soared to $2.2 billion, with a single-day peak of $740 million, a rarity in mainstream fixed-income products. Unlike the typically subdued preferred stock market, STRC has demonstrated robust demand comparable to fast-growing digital assets.
This unique structure, combining fixed income with crypto assets, is unprecedented in the financial markets. Given that institutional investors typically favor stable returns, STRC's model of linking yields to digital assets stands out in the fixed-income sector, characterized by low trading volumes and limited interest.
Analyst Rob Wallace commented that STRC is a powerful tool for acquiring Bitcoin, and its continuous Bitcoin accumulation will significantly reduce the circulating supply of Bitcoin entering the market in the future. He further stated, "Strategy purchased 22,337 BTC this week, while miners only produced 3,150 BTC. This means its purchase volume was more than seven times the weekly mining output during a bear market. STRC is on its way to becoming the Bitcoin accumulation machine Michael Saylor has always dreamed of."
In the past two weeks, STRC has cumulatively raised $1.557 billion. If this trend continues, it is projected to raise an additional $16 billion by the end of the year. This would substantially increase Strategy's Bitcoin holdings by nearly 30% without diluting the value of its common shareholders.
Currently, Strategy's daily Bitcoin purchase rate is approximately 2.66 times the global Bitcoin mining output rate, further exacerbating the reduction in available Bitcoin in the public market. As supply tightens, this trend is considered a key factor influencing Bitcoin's long-term pricing dynamics.
While some critics argue that STRC's growth model is unsustainable, drawing parallels to early skepticism surrounding the price surges of certain cryptocurrencies, Strategy's model, with its preferred stock structure, solid reserves of Bitcoin and cash, and avoidance of diluting common shareholder value, demonstrates its uniqueness and underpins its current success.