In the evolving landscape of digital assets, Strategy has emerged as a leader within the digital asset treasury (DAT) ecosystem, notably aided by its innovative digital credit instruments. A recent report from Bitcoin Treasuries highlighted that April marked one of the most significant months for bitcoin acquisitions since mid-2025, largely propelled by Strategy’s activities. The focal point of this expansion is STRC, Strategy’s perpetual preferred equity instrument, which was introduced in July 2025 with a substantial notional value of $8.5 billion and an attractive dividend rate of 11.50%.
In a bid to enhance liquidity and market efficiency, Strategy has proposed a shift from monthly to bi-monthly dividend payments. This decision aims to mitigate reinvestment lag and promote price stability, ensuring that the company can adjust promptly to market changes. The increased acquisition pace has allowed Strategy to solidify its position as the largest bitcoin holder, surpassing the BlackRock’s iShares Bitcoin Trust with a staggering total of 818,334 bitcoin.
Analysts from Bitcoin Treasuries disclosed that STRC was instrumental in creating new records in at-the-market (ATM) trading activity, contributing $3.3 billion to the company’s $4.1 billion in ATM proceeds from April 1 to May 3 alone. The combined ATM proceeds in March and April exceeded $5 billion, reflecting extraordinary daily, weekly, and monthly trading volumes. Furthermore, approximately 45,000 BTC was acquired by Strategy during this period, financed through STRC proceeds.
The report also revealed that institutional fund issuers command a significant portion of STRC holdings, totaling around $450 million spread across various mutual funds and ETFs. Strategy’s financial performance has mirrored this success, reporting a $2.1 billion increase on its balance sheet in the first quarter, primarily driven by STRC issuances, which have experienced a remarkable 189% growth year-to-date in 2026, reaching $5.58 billion.
Recognized as the largest tradeable preferred equity globally, STRC has garnered considerable attention from market analysts, including Bitwise research analysts. Ishmael Asad affirmed the growing favor of STRC, though he emphasized the critical question regarding the sustainability of dividend payments. This question was notably addressed during a recent earnings call, where the company revealed plans to sell a portion of its bitcoin holdings to fund the annual dividend of $1.5 billion. This move, while initially surprising to traders, was deemed a practical necessity.
Oliver Carding from Tesseract Group noted a fundamental shift in discussions surrounding sustainability. The model’s assumptions—that over 818,000 bitcoin holdings were permanently retained—have come into question with the introduction of potential bitcoin sales to meet financial obligations. Strategy’s issuance composition has also seen a significant change, with the proportion of MSTR common shares decreasing while reliance on digital credit has markedly increased.
Market sentiment remains cautiously optimistic, with TD Cowen analysts elevating their price target for Strategy to $395, anticipating higher expected yields from bitcoin. Managing Director Lance Vitanza highlighted that an increase in STRC issuance—without a proportional rise in common equity issuance—could enhance expected bitcoin accumulation in the coming fiscal years.
However, not all analysts share an overwhelmingly positive outlook; Benchmark Managing Director Mark Palmer referred to STRC’s evolution as “from an experiment into a killer product,” while simultaneously adjusting price targets downward based on lowered bitcoin price assumptions for the future.
Rajiv Sawhney from Wave Digital Assets underscored the potential risks associated with STRC’s reliance on market sentiment regarding bitcoin’s trajectory and Strategy’s operational discipline. The dynamic between demand for STRC issuance and the company’s obligations poses inherent risks, particularly during market downturns, where the demand for new issuances could wane precisely when Strategy needs it most.
Ultimately, while April showcased Strategy’s capability to bolster bitcoin prices as the primary marginal buyer, analysts express caution about the long-term sustainability of this strategy. A balanced mix of demand from other institutional players, alongside Strategy’s efforts, may be essential for the overall health of the bitcoin market.
