Strategy Adds 2,900 Bitcoin Using A Special Share Structure

Strategy

Strategy continues adding large amounts of Bitcoin to its balance sheet. Over the past two days alone, the company bought at least 2,900 BTC, according to market data. Funding for those purchases came largely from a special financial instrument called STRC.

Many people who are new to Bitcoin often wonder how large companies keep finding money to buy more coins. Strategy uses a method that connects traditional investors with Bitcoin purchases, even if those investors never buy Bitcoin themselves.

How STRC Shares Help Strategy Buy Bitcoin

STRC is a type of preferred share, which means it combines features of both a stock and a bond. Investors can buy the share for about $100 and receive around $11.50 per year in dividends. Dividends are regular payments companies give to shareholders, similar to interest from a bond. Payments usually arrive monthly, creating a steady income stream.

Stable income attracts large investors such as pension funds and insurance companies. Many of those institutions avoid buying Bitcoin directly because the price can move quickly and Bitcoin does not produce income.

Once investors buy STRC shares, Strategy receives the capital. The company then uses much of that money to buy Bitcoin. Demand for the shares therefore leads directly to more Bitcoin purchases.

Structure creates a simple cycle. Investors buy the income-paying shares, Strategy receives cash, and the company increases its Bitcoin holdings. Institutional money that might normally stay away from crypto can still help fund Bitcoin accumulation through that route.

Buying activity has already reached large numbers. Around $1.28 billion worth of Bitcoin was purchased last week, and the latest purchases added thousands more coins. Total Bitcoin supply will never exceed 21 million coins, so continued accumulation by large firms could tighten available supply if demand stays strong.

As of the most recent purchase on March 9, Strategy holds 738,731 BTC.

At time of writing, Bitcoin is moving hands at $69,818 according to CoinMarketCap data.