Institutional investors are increasingly treating Strategy‘s STRC preferred stock as a mainstream income product, with a combined $756 million invested across three leading U.S. preferred stock ETFs: BlackRock‘s PFF, Virtus InfraCap‘s PFFA, and VanEck‘s PFXF. This marks STRC as the largest single holding in those funds, signaling that ETF managers view Strategy as a reliable fixed-income issuer despite its ties to Bitcoin. However, the stock trades below its $100 par value at $86.88, and retail participation has declined. Prominent critic Peter Schiff has cast doubt on the institutional moves, while a broader Bitcoin price dip to $63,934 adds pressure to Strategy‘s funding capabilities.
Strategy‘s STRC preferred stock has been adopted as a major income-generating asset by three top U.S. preferred stock ETFs. These funds, from BlackRock, Virtus InfraCap, and VanEck, now hold a combined $756 million in STRC, making it their largest single investment. Strategy CEO Phong Le stated that the retail side saw a decline in numbers, contrasting with this institutional inflow.
This acceptance occurs despite STRC trading at $86.88, below its $100 par value at the time of publication. The situation has drawn criticism from Peter Schiff, who commented, “Yes, but that means retail investors sold for a loss. My guess is the institutional buyers bought in for a short-term trade only.” He speculated that these moves could involve shorting MSTR or Bitcoin, concluding, “None of those trades are bullish bets.”
The broader market is adding to the challenging environment. Bitcoin declined by 2.28% in the past day, trading near $63,934.94 at press time. Simultaneously, Strategy increased its cash reserves by $225 million to a total of $3.2 billion, a move that has injected concerns rather than displaying a bullish sign. As long as STRC remains below the crucial $100 level, Strategy‘s capacity to raise new funds for further Bitcoin purchases is still limited.
