Strategy (MSTR) bitcoin buying model faces scrutiny as STRC costs climb

• Strategy’s STRC model helped fund its Bitcoin purchase in H1, but annual dividends rose to $725 million, raising questions about its cost efficiency.
• K33 analysts stated that the US government's transfer of 17,700 Bitcoin to Coinbase Prime does not indicate potential selling activity.
• Bitcoin’s 30-day correlation with the Nasdaq rose to 0.6, its highest since June, although BTC's daily spot trading volume fell 10%.

Strategy’s (MSTR) STRC financing strategy increased its Bitcoin (BTC) holdings in H1, but made its capital structure more expensive, prompting an examination of its effectiveness, according to a Tuesday report by K33.

Strategy’s Bitcoin accumulation model faces scrutiny amid recovery

STRC recovered close to its $100 par value, closing at $99.90 after an extended period of heavy buybacks. The instrument helped Strategy (formerly MicroStrategy) acquire nearly 100,000 BTC in H1, but also increased its dividend obligations and capital costs.

K33 tested a hypothetical scenario in which Strategy did not use STRC to finance Bitcoin purchases during the first half of the year. Under this scenario, Strategy would have held 843,303 BTC as of Monday, compared with its actual holdings of 848,250 BTC. The company therefore accumulated 4,947 more BTC using its existing financing strategy.