Ahead of its Q2 earnings release, Strategy disclosed that institutional funds are accelerating their inflows into its preferred stock, STRC. Company management stated that this change is improving its funding structure and providing a more stable source of liquidity for continued Bitcoin purchases.
The company disclosed that between March and July, the average holding of institutional funds in STRC rose to $3.5 million, an increase of 105% from the previous period. At the same time, the proportion of retail investors holding shares decreased from 78% to 71%, indicating an increase in the proportion of institutional funds.
The three ETFs held a combined total of $756 million.
Strategy Chairman Michael Saylor stated that STRC has become the largest single holding in three U.S. preferred stock ETFs, with a combined holding of $756 million.
- PFF, a subsidiary of BlackRock
- Virtus InfraCap's PFFA
- VanEck's PFXF
The company's management views this increased institutional allocation as a positive sign, believing that Wall Street funds are supporting its long-term financing. According to this view, STRC is not only a financing tool but also an important channel for receiving external funds as the company continues to expand its Bitcoin holdings.
The decline in retail share sparks disagreement
However, market interpretations of this data differ. The report mentions that Peter Schiff questioned management's optimistic statements, arguing that the decline in retail shareholding might indicate that some small and medium-sized investors had already exited the market during the previous correction.
He also stated that institutional buying of STRC does not necessarily equate to a bullish outlook on Bitcoin's long-term trend; it could simply be an allocation strategy focused on interest rate differentials and structural returns. In other words, institutional inflows do not necessarily indicate a corresponding increase in market acceptance of the Strategy Bitcoin Treasury model.
More details will be revealed in the financial report on July 30.
The report also mentioned that as Bitcoin recently fell back to around $65,000, Strategy incurred an unrealized loss of approximately $1.25 billion in the current quarter. This has raised concerns about whether the company's model of relying on the capital market to continuously expand its Bitcoin holdings can continue to operate in a volatile environment.
Strategy plans to release its Q2 2026 earnings report on July 30th. At that time, the market will see the actual support the STRC provides to the company's fundraising and Bitcoin buying pace, and whether institutional inflows have become a new fulcrum for its treasury strategy.
Additional information:The information in the article regarding the growth in institutional holdings, changes in the retail share, and the size of ETF holdings is mainly based on public statements from Strategy's management and Chairman Michael Saylor's remarks.
