Strategy returns to buying BTC at scale

Strategy returned to buying BTC at scale, adding another 22,337 BTC. The recent large-scale purchases arrived after STRC gained popularity, allowing Strategy to resume more active fundraising. 

Strategy returned to large-scale weekly purchases, breaking the January high of 22,305 BTC. 

The company entered a streak of buying thousands of BTC each week. The most recent purchase added 22,337 BTC to the portfolio, becoming the highest weekly purchase since November 2024. 

The recent expansion from low-grade activity to large-scale purchases is seen as a signal for a potential BTC recovery. Following the latest purchase, BTC traded at $73,723, approaching the average Strategy breakeven price. 

Strategy may be a small BTC rally away from even more enthusiasm for its fundraising efforts, after a relatively slow bear market. Strategy expanded its BTC buying in the past three weeks, after buying just 592 BTC at the end of February. 

Strategy sells more STRC

The main source of more lively fundraising is STRC. The preferred stock is extending its trading range to $99-$101, where Strategy can sell more of the stock. 

With an effective interest rate of 11.5% in March, STRC is a tool for both BTC exposure and passive income. 

The weekly STRC performance is also boosting the confidence of Strategy investors, as some of the data appears in real time. 

The only warning with STRC is that Strategy will have to pay down its dividends monthly, quickly building a larger liquidity burden. 

Strategy still uses MSTR

Strategy still uses a mixed weekly issuance of STRC and MSTR. This time, for the first time, the STRC raise surpasses MSTR’s funds raised. 

Strategy raised $1.18B from STRC, and an additional 396M from MSTR. The company has $6.3B more in approved MSTR shares, while STRC issuance is not capped. 

Currently, STRC is the most actively traded preferred stock. Euro-denominated SATA is also growing rapidly, but has a small share of the whole Strategy mix. 

Despite the dilution, MSTR traded at $139.60, near the upper end of its range over the past month. In the past, MSTR has amplified BTC’s performance, so the recent interest in the shares may reflect expectations of a BTC price recovery. 

The recent enthusiasm still comes with the warning that STRC and weekly purchases still depend on continued inflows. The STRC approach may be less viable in a prolonged bear market with deeper losses.