Strategy, where Michael Saylor could be the one to hit the 1 million Bitcoin mark first, even ahead of BlackRock on a total holdings basis. The company has been heavily relying on its STRC preferred stock to fuel its Bitcoin acquisition program, given that its average daily volume is consistent with a purchase power of approximately 1,940 BTC per day.
One of the reasons behind the amazing results is the combination of its high yield and the potential to raise funds in multiple ways. This preferred stock offers an 11.50% yearly dividend, which is paid out in cash, on a monthly basis, and is intended to be traded close to its $100 face value.
This has significantly enhanced its attractiveness to income-focused investors, thereby driving considerable demand and enabling the company to raise capital at quite favourable conditions.
On the contrary, the daily turnover in recent trades crossed a whopping $409 million on Tuesday alone, while the 30-day average stood at $138.5 million.
Also Read: Strategy Raises $237M to Buy 3,015 Bitcoin as Holdings Climb to 720,737 BTC
Providing STRC keeps performing at a high level, Strategy’s buying power hidden in this defence could go up to approximately 5,700 BTC per day, which is almost 13 times Bitcoin’s daily mining supply. At this pace, the company will be going beyond 1 million BTC by August.
On the other hand, investors should keep in mind the risks related to STRC such as a possible dividend cut, share price volatility, and dilution. Despite the risks, the company’s enormous buying power and the increasing demand for STRC turn it into a development worth watching.
Also Read: Strategy Reaches ‘Orange Century’ as Saylor Marks 100th Bitcoin Purchase
