Strategy said institutional ownership of its preferred stock STRC climbed sharply over a four-month stretch, while retail participation declined. CEO Phong Le said average institutional fund holdings in STRC rose 105% to $3.5 million between March and July this year. Over the same period, the retail ownership share fell from 78% to 71%.
Chairman Michael Saylor added that STRC is now the largest single holding in three U.S. preferred stock ETFs, with BlackRock, Virtus InfraCap, and VanEck holding a combined $756 million. The figures were cited in a report referenced by Techub and attributed to U.Today.
Bitcoin critic Peter Schiff challenged the development, arguing that the lower retail share may suggest smaller investors capitulated during a recent market pullback. He also said the institutional buyers increasing exposure may not necessarily be expressing long-term confidence in Bitcoin.
The update comes as Strategy faces $1.25 billion in unrealized losses this quarter after Bitcoin fell to $65,000. Debate in the market continues over the sustainability of the company’s so-called Bitcoin buying machine.
Strategy said institutional funds sharply increased their exposure to the company’s preferred stock STRC between March and July this year.
According to CEO Phong Le, average institutional fund holdings in STRC rose 105% to $3.5 million during the period. Retail ownership moved the other way, falling from 78% to 71%.
Chairman Michael Saylor said STRC has become the largest single holding in three U.S. preferred stock ETFs. BlackRock, Virtus InfraCap, and VanEck together hold $756 million.
Bitcoin critic Peter Schiff questioned the shift. He said the drop in the retail ownership ratio could mean smaller investors capitulated and stopped out during the recent market correction, and argued that institutional investors adding to positions may not necessarily be expressing long-term conviction in Bitcoin.
Strategy is currently facing $1.25 billion in unrealized losses for the quarter after Bitcoin fell to $65,000. The market remains divided on the sustainability of its “Bitcoin buying machine,” according to the report cited by Techub from U.Today.
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