Michael Saylor’s Strategy (MSTR) may reach the 1 million Bitcoin (BTC) milestone faster than expected, potentially overtaking BlackRock in total holdings.
Key takeaways:
STRC share sales have generated cash to acquire over 3,500 BTC so far this week.
Strategy’s implied buying power could rise to roughly 5,700 BTC per day at Tuesday’s record pace.
Strategy’s BTC holdings over time. Source: BitBo.IO
Rising STRC demand implies 1,940 BTC of daily buying power
Strategy currently holds 738,731 BTC, including the 17,994 BTC purchase announced on Monday. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) holds 775,156 BTC, or roughly 36,500 BTC more than Strategy today.
But a relatively new instrument, Strategy’s STRC preferred stock, is helping close that gap faster.
STRC currently pays an 11.50% annual dividend, distributed monthly in cash.
The dividend rate adjusts every month to encourage the stock to trade near its $100 par value, which helps limit volatility. Strategy uses the proceeds from the share sales to buy Bitcoin.
Just this week, Strategy is estimated to have purchased over 3,500 BTC after selling roughly 6 million STRC shares through its at-the-market (ATM) program, data resource STRC.LIVE shows.
STRC’s volumes and BTC purchase estimates. Source: STRC.LIVE
Among the top STRC buyers is Bitcoin investment firm Strive.
On Wednesday, chief risk officer Jeff Walton said they acquired $50 million in STRC, noting that the allocation would generate about $5.75 million in annual income at STRC’s current yield.
Source: X
That is higher than roughly $1.85 million from 13-week T-bills, a difference of about $3.90 million per year.
On Tuesday, STRC logged a record $409 million daily volume and a $138.5 million 30-day average.
STRC dashboard. Source: Strategy
Using the $138.5 million average daily trading volume and a Bitcoin price near $71,000, STRC could theoretically buy roughly 1,940 BTC per trading day, more than four times Bitcoin’s daily mined supply.
On days when STRC trading approaches its $409 million record, the implied buying power rises to around 5,700 BTC, or nearly 13 times daily mining supply.
At this…
..
