Key Takeaways
Strategy’s preferred stock (STRC) recorded an all-time high trading volume of $1.53 billion on May 14, enabling the company to fund the purchase of 11,707 bitcoin (BTC).
"The surge in liquidity highlights growing investor activity," Executive Chairman Michael Saylor noted in a post on X, referencing the new daily volume record.
The trading frenzy, which was more than four times the 30-day average volume of $331 million, was driven by investors rushing to own the stock before its May 15 ex-dividend date. The STRC shares, which trade at their $100 par value, offer an attractive 11.5% annual dividend, paid monthly.
The event further solidifies Strategy's model of using capital markets to accumulate bitcoin, a strategy that increases its correlation with the crypto market. This approach attracts investors bullish on bitcoin but also exposes the company to greater volatility and continued scrutiny from market skeptics.
The STRC stock has become a primary vehicle for Strategy's aggressive bitcoin acquisition strategy. According to reports from last month, STRC-linked acquisitions accounted for roughly 77,000 BTC, significantly outpacing the net purchases of all U.S. spot Bitcoin ETFs combined during the same period. The company recently resumed its buying activity, picking up another 535 BTC for $43 million last week, as disclosed by Saylor.
This "buy-and-hold" strategy, however, is not universal among public companies exposed to bitcoin. MARA Holdings, for example, recently sold 20,880 BTC for $1.5 billion in the first quarter to retire debt and pivot towards AI infrastructure, reducing its position as a top public Bitcoin holder.
Strategy’s financing model continues to draw criticism. Noted bitcoin skeptic Peter Schiff has been vocal in his critique, describing the STRC structure as a "Ponzi scheme." Saylor has defended the company's approach, clarifying that any potential bitcoin sales would be strategic tax-loss harvesting maneuvers, not an abandonment of their core accumulation thesis.
As of the latest purchase, Strategy remains the world's largest corporate owner of Bitcoin. The price of Bitcoin was trading around $80,700 at the time of the report.
This article is for informational purposes only and does not constitute investment advice.
