Strategy STRC Sets New Trading Record with $283 Million in BTC
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On March 12, a notable milestone was achieved by Strategy with its STRC preferred stock offering, as it amassed a remarkable amount of capital, sufficient to acquire 4,000 BTC in just one trading day.
This single-day performance has been especially significant, considering that the total for the week surpassed 10,000 BTC, capturing the interest of investors who are keenly observing the aggressive accumulation practices of the largest corporate holder of Bitcoin.
Insights shared on the social media platform X revealed the trading volume for STRC reached approximately 7.3 million shares during this record-setting day. This figure marks an astounding increase of 471% compared to its daily average trading volume.
The analysis conducted by BitcoinTreasuries leveraged a model that scrutinized one-minute candlestick data throughout the trading session, including pre-market and after-hours activity. For any closing price at or above $99.92, which is close to STRC’s $100 par value, the model calculated that around 40% of the volume was related to at-the-market (ATM) issuance. After factoring in a 2.5% fee for underwriters, the resulting net proceeds were divided by the average Bitcoin price of the session to estimate the total Bitcoin that could be purchased.
The outcome of this record trading day was an impressive net amount exceeding $283 million. When divided by Bitcoin’s average price, this indicated that the funds could secure 4,000 BTC, marking a significant achievement for the program.
The overall trading value for the day was approximated at $743 million, with some analysts, including Mark Harvey, speculating that STRC could see its first billion-dollar trading day if the upward momentum continued, as there were still two hours of trading left before the market closed.
Additionally, STRC is designed to offer a variable monthly dividend that stands at an annualized rate of 11.5%. This structure is strategically crafted to maintain the stock’s price near par while channeling investor funds directly into Bitcoin acquisitions, presenting a yield-focused investment alternative that typically exhibits less volatility compared to Strategy’s standard MSTR stock.
The dividend is perpetual, meaning there is no principal repayment required, distinguishing it from traditional debt instruments. Harvey illustrated this concept with a hypothetical scenario where the issuance of $100,000 in STRC at the 11.5% yield would incur a fixed annual dividend obligation of $11,500. He noted that even with a potential tenfold increase in Bitcoin’s value over five years, the fixed dividend obligation remains unchanged, creating a substantial net gain for shareholders.
As of March 9, the company reported holding a total of 738,731 BTC, bolstered by recent acquisitions, including 3,015 BTC on March 2 and an additional 17,994 BTC on March 9 for a cost of $1.28 billion.
This substantial Bitcoin reserve is currently valued at around $53.1 billion, while the total investment by the company is slightly over $56 billion.
This record trading day not only highlights the robust performance of STRC but also reinforces the growing trend of corporate investments in Bitcoin, signaling a greater acceptance and integration of cryptocurrency into mainstream finance.
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