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▲ Strategy (MSTR), Bitcoin (BTC) / AI Generated Image
STRC, a preferred stock of Strategy (MSTR), has emerged as a new variable in the Bitcoin (BTC) market. It can create stronger buying pressure than Bitcoin spot ETF funds, but the key is not the size of fund inflows but the price stability of STRC.
According to the cryptocurrency specialized media CryptoPotato on May 28 (local time), on-chain research firm Pine Analytics analyzed that Strategy's preferred stock STRC has emerged as a key variable that will determine Bitcoin's upward trend. Pine Analytics pointed out that there were weeks when STRC created greater Bitcoin buying pressure than all US Bitcoin spot ETFs combined.
According to a report released by Pine Analytics on May 27, STRC raised $1.18 billion through at-the-market stock sales from March 9 to 15, 2026. Strategy used these funds to purchase 17,994 BTC at an average price of $70,946. In the same week, the total net inflow for all 12 US Bitcoin spot ETFs was only about $763 million.
The key is the structural difference rather than the fund size. When redemptions occur in Bitcoin spot ETFs, authorized participants sell Bitcoin on the market to match liquidity. In fact, on January 29, a net outflow of $817.8 million occurred from US Bitcoin spot ETFs. On the other hand, even if STRC holders sell their shares, the transaction ends in the stock market, and Strategy does not dispose of its held Bitcoin. Pine Analytics stated, “STRC does not exist to pay dividends. It exists to buy Bitcoin. Dividends are the cost to keep the machine running.”
STRC's weakness is its price. Strategy can only issue new shares when STRC trades above $100, and funds raised above the $100 benchmark are invested in Bitcoin purchases. The report explained that since STRC's launch, its 30-day rolling volatility has decreased from 18% to approximately 2%, increasing institutions' capacity to expand positions. However, according to Strategy's website, the latest 30-day historical volatility is approximately 4.2%, and the STRC price was below the benchmark at $99.47.
The report pointed out that if the STRC price remains below the benchmark, the ATM issuance program could halt, and one of the largest structural buying pressures in the Bitcoin market could disappear. Even a typical price drop due to an ex-dividend event earlier this year halted issuance, causing weekly Bitcoin purchases to plummet from 17,994 BTC to 1,031 BTC. STRC's volatility has emerged not merely as a preferred stock price issue but as a variable determining the sustainability of Strategy's Bitcoin purchases.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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