BTC Purchases with Strategy STRC Under Scrutiny
BTC/USDT
$10,981,254,082.66
$76,776.21 / $75,323.65
Change: $1,452.56 (1.93%)
-0.0035%
Shorts pay
Contents
Strategy's BTC Treasury Strategy
Strategy's STRC preferred shares serve as the main tool in financing the company's BTC detailed analysis purchases this year, while analysts and investors question the sustainability of this structure. Benchmark analyst Mark Palmer refuted criticisms in his Wednesday report that labeled STRC a “cyclical Ponzi scheme”; he argued that these comments misrepresent the company's capital raising and usage. Palmer described STRC as part of a deliberate and permanent model that converts yield-seeking into long-term bitcoin exposure. He added that the company doesn't circulate capital in a vacuum but transfers it directly to the bitcoin treasury. This approach places Strategy's bitcoin strategy at the center.
STRC's Role in BTC Financing
STRC operates as a variable-rate, perpetual preferred share distributing approximately 11.5% annual dividends; the dividend rate is adjusted accordingly to keep it around $100. According to 8-K filings with the SEC, Strategy raised $3.5 billion in the first three weeks of April, with the majority coming from STRC sales. The proceeds were used to purchase 51,364 BTC in three consecutive weeks of buys; at current prices, they are worth $3.9 billion. The company currently holds 818,334 BTC, with a market value of approximately $62.5 billion; it has turned from a six-month loss to $700 million in unrealized profit.
Risks and Defenses in BTC Holdings
Benchmark states that the model is not dependent on continuous new issuances and that dividends can be paid using BTC futures if necessary. Critics, however, believe such a sale from the largest institutional bitcoin holder would trigger panic selling; figures like Grayscale analyst Zach Pandl also view these instruments as risky bets on bitcoin price. The STRC debate outlines the limits of debt and equity hybrids in institutional bitcoin strategies. This model suggests that yield-focused capital flows can strengthen BTC treasury models while highlighting liquidity risks.