STRC Preferred Stock Surpasses $756 Million in ETF Holdings Despite Trading Below Par Value

Strategy's STRC preferred stock has become the largest holding in three major U.S. preferred stock ETFs, which collectively own $756 million of the security even as its price remains about 13% below its $100 par value.

Institutional ownership of STRC has risen by 105%, with institutional holdings increasing to an average of $3.5 million per position between March and July. During this period, retail investors' share of ownership fell from 78% to 71%.

Strategy's CEO Phong Le noted that 'The institutions are coming,' but Peter Schiff pointed out that the increase in institutional holdings may not be a bullish sign for STRC or Bitcoin. Schiff suggested that some funds could have purchased STRC while shorting Strategy's common stock, MSTR, as a spread trade.

Strategy plans to issue more STRC and buy Bitcoin once the stock returns to $100. The company currently pays STRC holders a 12% annual dividend in cash through two monthly payments.