A new category of crypto treasury companies is forming around Strategy’s high-yield stock, STRC, which is attracting firms eager to gain exposure to bitcoin while securing additional income. STRC, a security issued by Strategy, the largest publicly traded holder of bitcoin, serves as a funding mechanism for the company’s ongoing bitcoin acquisition strategy.
Investors are drawn to STRC due to its attractive annualized dividend of 11.5%, paid monthly in cash. The proceeds from these investments are primarily allocated towards purchasing bitcoin. The stock’s popularity has surged, evidenced by a record trading volume of over $1.6 billion in shares on a recent Tuesday.
As trading activity increases, a variety of companies and decentralized finance (DeFi) protocols are accumulating STRC to benefit from its yield while gaining indirect exposure to bitcoin. STRC is now being utilized as a foundational element for new financial products that incorporate leverage, tokenization, and structured yield.
For instance, Saturn Credit, a bitcoin-backed yield platform, amassed $15 million in STRC within just six days of its launch. Similarly, Apyx, an on-chain credit protocol, has acquired 800,000 shares of STRC, including a recent purchase of 200,000 shares, positioning itself as one of the largest stakeholders.
BitStrategy is pursuing a comparable strategy, with co-founder Ryan McGinnis stating the firm aims to accumulate Strategy securities, aspiring to become the largest shareholder of Strategy in the long term. On-chain data reveals that nearly $200 million in tokenized STRC currently exists on the Ethereum network, with close to $100 million being traded on Pendle, a DeFi platform that enables users to trade and separate yield from underlying assets.
However, following the stock’s ex-dividend date, STRC’s price fell to $99.39 during Wednesday’s pre-market trading, dipping below its $100 par value. This price point is significant as it often correlates with the company’s issuance of new shares. The decline occurred after the stock went ex-dividend, meaning that new buyers would not qualify for the upcoming dividend payment. Consequently, the company has temporarily halted new share sales through its at-the-market (ATM) program.
In related news, the largest corporate ether holder reported a quarterly loss of $3.8 billion as it pivots from mining to ether accumulation. Bitmine Immersion Technologies has rapidly transitioned from a mining firm to a leveraged Ethereum treasury, doubling its share count in six months and raising over $10 billion to acquire nearly 5% of all ether.
- Bitmine now holds 4.87 million ether at an average cost of $2,206 per token.
A new class of crypto treasury firms is forming around Strategy's high-yield stock, STRC, which is attracting significant investment for bitcoin exposure and income. However, the stock's recent decline below par value raises questions about future share sales.