On-chain analytics firm Pine Analytics analyzed that Strategy's (MSTR) preferred stock STRC has emerged as a significant buying entity, purchasing more volume than US spot Bitcoin ETFs, but has also become a new variable. According to CryptoSlate, the firm stated, "From March 9 to March 15 this year, STRC raised $1.18 billion and purchased 17,994 BTC. During the same period, the 12 US spot BTC ETFs only recorded a net inflow of $763 million. Unlike spot ETFs, STRC does not affect the BTC held by Strategy even if shareholders sell STRC. However, STRC's weakness is maintaining its par value. Although STRC's volatility has compressed from an initial 18% level to around 2%, there are concerns that a prolonged drop below $100 could lead to pressure to halt issuance. If STRC collapses, it would exert significant downward pressure on the entire market." Strategy's STRC is a product that pays monthly variable dividends targeting an annual 11.5% for holders. If the price exceeds its par value ($100), the dividend rate decreases, and if it falls below the par value, the dividend rate increases. Recently, it has been functioning as a source of funds for Strategy's BTC purchases.
