In a bold move that could redefine the landscape of institutional Bitcoin (BTC) investment, Michael Saylor’s Strategy (MSTR) is on track to reach the 1 million BTC milestone faster than BlackRock, the current leader in the space. This rapid ascent is fueled by the innovative use of Strategy’s STRC preferred stock, a financial instrument that has attracted significant attention and investment.
STRC: The Driving Force Behind Strategy’s Bitcoin Ambitions
Key to Strategy’s aggressive Bitcoin acquisition strategy is the STRC preferred stock, which pays an 11.50% annual dividend distributed monthly in cash. The dividend rate is adjusted monthly to encourage the stock to trade near its $100 par value, a mechanism designed to limit volatility. The proceeds from the sale of STRC shares are then used to purchase Bitcoin, driving Strategy’s holdings higher at an unprecedented rate.
Just this week, Strategy is estimated to have purchased over 3,500 BTC after selling roughly 6 million STRC shares through its at-the-market (ATM) program, according to data from STRC.LIVE. This buying power is expected to rise to roughly 5,700 BTC per day at the record pace set on Tuesday.
Comparing Strategy and BlackRock
As of the latest data, Strategy holds 738,731 BTC, including the 17,994 BTC purchase announced on Monday. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) holds 775,156 BTC, a difference of about 36,500 BTC. However, the gap is closing rapidly, thanks to Strategy’s aggressive buying strategy.
At the current rate, Strategy’s Bitcoin holdings are on track to surpass the 1 million BTC mark by August, potentially leaving BlackRock in its dust. This would be a significant milestone, highlighting the growing influence of Bitcoin in institutional portfolios and the innovative financial instruments that are driving this trend.
Institutional Interest in STRC
Among the top buyers of STRC is Bitcoin investment firm Strive. Jeff Walton, the chief risk officer of Strive, announced the acquisition of $50 million in STRC, noting that the allocation would generate about $5.75 million in annual income at STRC’s current yield. This is significantly higher than the roughly $1.85 million from 13-week T-bills, a difference of about $3.90 million per year.
On Tuesday, STRC logged a record $409 million daily volume and a $138.5 million 30-day average. Using these figures and a Bitcoin price near $71,000, STRC could theoretically buy roughly 1,940 BTC per trading day, more than four times Bitcoin’s daily mined supply. On days when STRC trading approaches its record volume, the implied buying power rises to around 5,700 BTC, or nearly 13 times the daily mining supply.
Future Prospects and Risks
Analyst Adam Livingston suggests that STRC could soon start competing with traditional fixed-income markets. The global fixed-income market reached $145.1 trillion in 2024, and the U.S. fixed-income market was $48.9 trillion as of Q3 2025. If products like STRC attract even 0.1% of global fixed-income outstanding, that would amount to $145.1 billion. At $71,200 per Bitcoin, this capital could buy roughly 2.04 million BTC, purely as a scale illustration.
However, STRC still carries significant risks for investors. Strategy warns that STRC does not guarantee returns and is neither a bank deposit nor FDIC insured. It also lacks the regulatory protections of bank accounts, money market funds, treasuries, or similar instruments. Analyst ColinTalksCrypto has also expressed concerns, noting that STRC can cut the dividend, its share price can fall below its $100 par value, and Strategy can issue more shares that dilute existing holders.
Conclusion: A New Era in Bitcoin Investment
The rapid rise of Strategy’s Bitcoin holdings, fueled by the innovative STRC preferred stock, is a testament to the growing institutional interest in Bitcoin. While the risks are real, the potential rewards are significant, and Strategy’s aggressive strategy could set a new standard for institutional Bitcoin investment. As the race to 1 million BTC heats up, the crypto community will be watching closely to see if Strategy can indeed overtake BlackRock and redefine the landscape of institutional crypto investment.
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