Analysts are pointing to Strategy's perpetual preferred equity instrument, STRC, as a key factor in the recent rally in the price of bitcoin. According to Matt Hougan, Bitwise's CIO, STRC has enabled the company to maintain its acquisition pace despite market fluctuations, adding $7.2 billion in bitcoin over the past eight weeks.
This is a significant increase compared to the $3.8 billion in bitcoin bought by ETFs since March 1. Hougan notes that while ETF flows have been important, STRC has been the single biggest factor in bitcoin's recent price action.
Strategy CEO Phong Le has stated that roughly 80% of STRC's value is held by retail investors, including HNWIs and family offices. This suggests that STRC is a new class of buyer for bitcoin, rather than just cheaper capital for Strategy.