Quick Takeaways
- STRC now constitutes about 90% of MicroStrategy’s daily trading volume, a significant rise from 10% five months ago, highlighting its growing liquidity dominance.
- Strategy’s STRC preferred stock traded a record $1.1 billion on April 13, with a stable $100 par value paying 11.5% annual dividends, continuously increasing since launch.
- The firm uses dividend income and share issuance to continually acquire Bitcoin, with recent buys totaling nearly 781,000 BTC worth around $59 billion, creating a lucrative Bitcoin exposure machine.
- STRC’s trading volume relative to market cap surpasses major tech giants, and its preferred stock acts as a key liquidity engine, now comprising about 90% of MicroStrategy’s daily trading activity.
Strategy’s STRC stock set a new record, hitting $1.1 billion in daily trading volume on April 13. This figure surpassed its previous single-day high by nearly 47% and was more than four times its 300-day average of about $274 million. The surge highlights growing interest in the company’s unique approach.
Notably, STRC now accounts for approximately 90% of MicroStrategy’s (MSTR) daily trading activity, a big jump from just 10% five months ago. This shift shows how much focus investors place on Strategy’s use of Bitcoin.
STRC, or Variable Rate Series A Perpetual Stretch Preferred Stock, lists on Nasdaq. It pays an annual dividend rate of 11.5%, adjusted monthly to keep the stock near $100. Since its launch in July 2025, the rate has climbed from 9% to 11.5%. Unlike typical stocks, STRC has no maturity date, and Strategy does not have to return principal. Instead, the company pays dividends and issues new shares when the stock trades at or above par. The proceeds from new share issuance are then used to buy Bitcoin.
This process explains why the record trading day is so significant. According to analysts, the company funded roughly 9,894 BTC on that day through its ATM program, which supports its Bitcoin holdings. The previous day, Strategy also announced a $1 billion purchase of nearly 13,927 BTC at around $72,000 each. Overall, Strategy has acquired about 780,897 BTC, worth around $59 billion.
Analysts estimate that at 11.5% annual dividend, Strategy will generate about $98 million per year in dividend payments. Over ten years, this adds up to less than $1 billion. If Bitcoin appreciates at 25% annually, the Bitcoin purchased could be worth nearly $8 billion in ten years. This creates a potential value spread of about $7 billion after dividends.
The strong trading volume also highlights STRC’s liquidity. Over the past month, its average trading volume has been about 4.8% of its market cap. For comparison, Apple’s liquidity ratio is only 0.3%. Remarkably, STRC’s trading activity exceeds that of major tech giants like Tesla, Meta, Nvidia, and Apple relative to their market cap.
Furthermore, the rising Bitcoin price benefits STRC holders. Strategy’s ability to cover dividends indefinitely depends on Bitcoin’s growth outpacing its 2% annual return threshold. This innovative approach links capital markets directly to Bitcoin, making STRC a pioneering model in digital asset exposure.
Strategy’s move into high-volume trading marks a significant development in technology and finance. It shows how financial strategies are evolving with digital currencies and how new funding mechanisms can influence market behavior.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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