Strategy STRC Finances Bitcoin Purchases

Strategy's STRC preferred shares serve as the main tool in financing the company's bitcoin purchases this year, while analysts and investors question the sustainability of this structure. Benchmark analyst Mark Palmer countered criticisms in his Wednesday report that described STRC as a "cyclical Ponzi scheme"; he argued that these comments misrepresent the company's capital raising and usage. Palmer characterized STRC as part of a deliberate and permanent model that converts yield-seeking into long-term bitcoin exposure. He added that the company does not circulate capital in a vacuum but transfers it directly to the bitcoin treasury. This approach centers Strategy's bitcoin strategy.

STRC's 11.5% Dividend Structure and Capital Raising

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 SEC 8-K filings, Strategy raised 3,5 billion dollars 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; according to the BTC detailed analysis page, at today's prices ($78,206), their value reaches approximately 4 billion dollars.

Strategy's Bitcoin Treasury Size and Profit Status

The company currently holds 818.334 BTC, with a market value of approximately 64 billion dollars; it has turned from a six-month loss to an unrealized profit of 700 million dollars. Benchmark states that the model is not dependent on continuous new issuances and that dividends can be paid with bitcoin sales if necessary. Critics, however, believe that 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.

Benchmark's Defense Against Ponzi Criticisms

Benchmark's defense suggests that yield-focused capital flows can strengthen bitcoin treasury models, while criticisms highlight liquidity risks. Pandl's recommendation of spot bitcoin ETFs as the cleanest option signals a shift in investor preferences from direct purchases to derivatives.

BTC Technical Analysis: Support and Resistance Levels

Current BTC price $78,206 (+1.04% 24h), in a sideways trend with RSI 61.07. Strong supports S1 $71,926 (⭐ STRONG, -8.07%) and S2 $78,122 (⭐ STRONG, -0.15%). Resistances R1 $79,425 (⭐ STRONG, +1.52%), R2 $84,650 (moderate, +8.20%). Supertrend bearish, EMA20 $76,028. Strategy's massive BTC treasury could be affected by these levels; follow BTC futures. Such instruments in the sector signal a new phase in bitcoin's institutional integration.