Strategy’s STRC stock has become the most liquid preferred stock as demand for the Bitcoin-backed security continues to rise. This development comes just as crypto traders predict that Michael Saylor’s company bought over 1,000 BTC this week, with the stock’s at-the-market (ATM) program likely contributing to the latest purchase.
Saylor Announces Milestone For STRC Stock
In an X post, Saylor revealed that STRC is the most liquid preferred, with an average daily trading volume of $296 million. The stock is ahead of the BA, KKR, and FOUR preferred stocks, which have average daily trading volumes of $35.8 million, $33.5 million, and $27.6 million, respectively.
The STRC stock is also ahead of other Strategy’s preferred equities, STRK, STRF, and STRD, which have average daily trading volumes of $18.8 million, $14.5 million, and $14.4 million, respectively. It is worth noting that the stock currently offers a dividend of 11.50%, which has helped drive its demand.
Strategy announced this week that fellow Bitcoin treasury company Strive had allocated $50 million, which represents over one-third of the company’s corporate treasury, to STRC. Strive’s CEO Matt Cole said that instead of holding idle cash earning low yields, it made sense to allocate a portion of those reserves to instruments like STRC that provide “strong yield dynamics while maintaining stable price behavior with deep liquidity.”
Strive joins a host of institutional investors, including Prevalon Energy, Anchorage Digital, and OranjeBTC, who have disclosed allocations to STRC stock. Strategy CEO Phong Le also highlighted the crypto stock’s performance, noting that over the last 10 days through March 11, it traded at a par value of $100 while trading volume increased by more than 5x.
However, the stock dropped below $100 yesterday and is currently trading just below $100 at $99.75. Meanwhile, it is worth noting that STRC has become a major part of Strategy’s Bitcoin accumulation flywheel.
As CoinGape reported, Strategy bought 17,994 BTC last week for $1.28 billion. The company sold 3.8 million shares, raising net proceeds of $377.1 million, which it used to fund part of that purchase.
Source: https://coingape.com/news/stocks/strategys-strc-becomes-most-preferred-liquid-stock/
