On March 12, Strategy’s STRC preferred stock program set a single-day record, generating enough capital to fund the purchase of 4,000 BTC.
According to data from BitcoinTreasuries, the week’s total was already enough to buy more than 10,000 BTC, a pace that is drawing the attention of investors who are watching how aggressively the world’s largest corporate Bitcoin holder is building its treasury.
In a post on X, BitcoinTreasuries revealed that there were about 7.3 million shares traded during the March 12 session, a figure 471% higher than the stock’s average daily volume.
The platform uses a model that analyzes 1-minute STRC candles during the entire trading day, including pre-market and after-hours sessions. For any bar that closed at or above $99.92, considering STRC’s $100 par value, the model attributed 40% of the volume to at-the-market (ATM) issuance. It then subtracted a 2.5% underwriter commission and divided the net proceeds by the session-average Bitcoin price to get an estimated BTC total.
March 12th’s 7.3 million share volume yielded just over $283 million in net proceeds using the formula, and when divided by Bitcoin’s average price near $70,000, it was found that the money could buy 4,000 BTC, which was a first in the program’s history.
The amount of trading reached an estimated $743 million, exciting observers enough that one of them, Mark Harvey, suggested that the day could become STRC’s first $1 billion trading day, given that at the time there were still two hours left before the market closed.
STRC pays a variable monthly dividend currently annualized at 11.5%, and it has built-in rate adjustments designed to keep the stock trading near par. The instrument channels investor capital directly into Bitcoin purchases while providing a yield-focused product that tends to move less than Strategy’s common MSTR stock.
Essentially, the fixed dividend remains perpetual with no principal repayment required, unlike debt. Harvey recently gave an example of how it works, using a hypothetical scenario where the company issues $100,000 of STRC at the stated 11.5% yield to buy BTC.
According to him, it would create a yearly dividend obligation of $11,500, which would be fixed, meaning that even if BTC’s value were to shoot up 10 times in five years, Strategy’s dividend obligation would be just $57,500, while its BTC holding grows by $1,000,000, delivering a net $842,500 gain to shareholders.
As of its most recent filing dated March 9, Strategy held 738,731 BTC, boosted by recent purchases, including 3,015 BTC bought on March 2 and a bigger announcement of 17,994 BTC on March 9 acquired for $1.28 billion.
At current prices, the stash is valued at about $53.1 billion, with the company having acquired it for just over $56 billion.
The post Strategy STRC Offering Hits Record High in Single Day appeared first on CryptoPotato.
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