Strive’s SATA preferred stock has recently recovered nearly 16% from its June lows. The stock is currently trading around $97, just 3% shy of its original $100 par value. Previously, SATA had fallen to $83.30 before climbing back up. Jan3 CEO Samson Mow believes this recovery trend could pull Strategy’s STRC shares along to break through their $100 par value.
STRC remains 13% below par value, settling at $87 at the close of trading on July 24. This figure sits within its 52-week range of $71.25 to $100.42. Strategy made a major move by selling 3,588 BTC worth $216 million on July 6, specifically to fund dividend distributions for its digital credit stock. Despite selling thousands of coins, the firm retains the top spot, holding 843,775 BTC as the world’s largest corporate treasury, while Strive ranks seventh with a reserve of 19,921 BTC.
Who Is Buying Up STRC?
STRC share ownership is gradually shifting into institutional hands. From March through July, average fund manager positions in STRC surged 105%, doubling from $1.7 million to $3.5 million. This institutional influx caused retail investor holdings to drop from 78% to 71% over the same timeframe.
The flow of institutional capital has placed STRC in a prime position. The stock is now the largest holding across three major US preferred ETFs: BlackRock iShares PFF, Virtus InfraCap PFFA, and VanEck PFXF. Combined, these three Wall Street ETF portfolios hold $756 million worth of STRC shares.
Wall Street Spread Tactics
The flood of capital does not necessarily signal high institutional confidence in Strategy’s business fundamentals. Peter Schiff suggests the wave of buying could be a pure spread trade. In this setup, fund managers take a long position on STRC while shorting MSTR shares to capture profit margins from the price gap. This strategy indicates their motives may not be driven by a purely bullish bet.
The crypto reserve landscape is also welcoming players with novel structures. Samson Mow pointed to Orange Juice, a treasury entity established by Lyn Alden that launched on July 15, as an example of a newcomer featuring a management concept distinct from the established giants.
Aggressive institutional inflows into Wall Street ETFs highlight growing demand for corporate digital assets. However, conventional players are largely driven by margin hunting via price discrepancies, with Wall Street primarily seeking swift profit opportunities. Sourced from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
