STRC returns to $100, opening path to renewed Bitcoin buying

STRC’s return to $100 and adoption of daily dividends could reopen a funding channel for Bitcoin purchases and support larger buying volumes.

In a video published on his X account on November 9, Joe Consorti argued that the recovery in Strategy’s preferred stock could allow the company to resume raising capital for Bitcoin purchases. Daily payouts could help stabilize the share price, expanding a channel that connects income investors’ capital with Bitcoin demand, he said.

Consorti identified $100 as the key threshold for renewed issuance. He attributed the recovery primarily to daily dividends, arguing that the change could help STRC remain at the level required to fund further purchases.

According to Consorti, STRC pays an annual dividend of 12% and is designed to trade around $100. Strategy uses proceeds from issuing the preferred stock to buy Bitcoin but does not sell new shares below $100, he said. STRC traded at $100 on November 4 for the first time in 165 days, bringing that funding channel closer to reopening.

STRC raised $7.52 billion in the first half of the year, financing purchases of roughly 100,000 Bitcoin, Consorti said. That exceeded the approximately 81,000 Bitcoin produced by miners over the same period. During two weeks in May alone, Strategy raised $2 billion through STRC issuance and purchased 24,869 Bitcoin, he added.

The subsequent share-price decline interrupted that funding channel and prompted criticism of the model’s sustainability, Consorti said. STRC fell to $71.25 on June 26, while Strategy sold 32 Bitcoin around the start of June to help cover dividends. He argued that the subsequent recovery to $100 showed that concerns about a downward spiral had been premature.

Consorti described daily dividends as a way to reduce price swings around payout dates. Under monthly payments, he said, STRC’s price rises as the dividend approaches and then falls by about $1 afterward. Daily payments reduce that movement to approximately 3 cents, in his account, limiting the incentive to sell immediately after a payout and potentially keeping the stock near its issuance threshold for longer.

He pointed to Strive as an earlier example of the approach. After its preferred stock SATA switched to daily dividends, it traded at $100 for 16 consecutive sessions in September, allowing Strive to issue shares, Consorti said. The company purchased 15,124 Bitcoin in October, exceeding the approximately 13,500 Bitcoin mined that month, he added.

Strategy shareholders approved daily dividends for STRC on October 28 with 99.3% of the vote, and the first daily payment followed on November 3, Consorti said. He also noted that Strategy had repurchased approximately $2.25 billion of STRC since July. Those buybacks had continued for months before the recovery, leading him to identify daily dividends as the decisive factor in the return to $100.

Consorti compared the structure with the launch of spot Bitcoin ETFs in 2024. While ETFs opened access through brokerage accounts, preferred stock can attract investors seeking income and direct the proceeds toward Bitcoin purchases, he argued. He put the global bond market at approximately $160.7 trillion, while acknowledging that STRC carries greater risk than a Treasury.

The scale of additional buying would depend on sustained fundraising and purchasing activity. Consorti estimated annual Bitcoin mining output at approximately 164,000 and said STRC’s first-half purchasing pace and Strive’s October pace would each exceed that supply if maintained for a year. If both channels operated simultaneously at those rates, their combined purchases could substantially exceed newly mined supply before demand from spot ETFs and other buyers, he argued.