Bitcoin volatility matches Nvidia as Strategy’s STRC remains calmest Big Tech stock
Michael Saylor, Executive Chairman of Strategy, shared a chart highlighting Bitcoin's (BTC) volatility, which now stands at 39%, matching Nvidia's. This data, as of the October 2 market close, shows Bitcoin trailing only Meta (47%) and Tesla (43%) among Big Tech names. Saylor framed Bitcoin as the base layer for digital capital, with Strategy's assets, BTC, MSTR, and STRC, serving different investor needs.
Strategy's 12%-yield preferred stock, STRC, demonstrated significantly lower volatility at 9%, making it the calmest among the Magnificent Seven tech giants. However, STRC faced a 25% drop to $75 in late June due to leverage-driven selling before the company intervened to support it. Since late July, Strategy has repurchased STRC, building a $5 billion reserve and stabilizing its price near $100.
Critics like Peter Schiff argue that Strategy has reduced its Bitcoin-buying power, relying more on MSTR sales since its last STRC offering in May. Despite this, Strategy continues to accumulate Bitcoin, now holding 847,666 BTC at an average cost of $75,437. Saylor emphasized that STRC's stability depends on Strategy's ability to defend its par value.