Analysts believe STRC creates a constant one sided demand for Bitcoin because selling activity tied to the stock never directly affects BTC markets.
Strategy’s preferred stock, STRC, has recently become a larger buyer of Bitcoin (BTC) during peak periods than all US spot Bitcoin ETFs combined.
Unlike ETF flows, however, STRC activity only moves in one direction. According to a recent report from on chain researchers at Pine Analytics, this imbalance is one of the most important factors behind Bitcoin’s potential for sustained upside momentum.
One Sided Demand Compared to Two Way ETF Flows
In a report published on May 27, Pine Analytics compared Bitcoin purchases driven by STRC with those tied to ETFs. The firm noted that between March 9 and March 15, 2026, STRC’s at the market share sales generated $1.18 billion. Strategy then used those proceeds to purchase 17,994 BTC at an average price of $70,946.
During that same week, all 12 US spot Bitcoin ETFs recorded combined inflows of roughly $763 million. This meant STRC alone outpaced the entire spot Bitcoin ETF market in terms of BTC buying activity.
Pine Analytics stressed that the more significant difference lies in the structure of the flows themselves. ETF flows can move in both directions, while STRC flows only move one way. For instance, on January 29, spot Bitcoin ETFs experienced net outflows of $817.8 million, forcing authorized participants to sell Bitcoin into the market to meet redemptions. STRC does not operate this way. When investors sell STRC shares, the transactions occur entirely within the equity market, and Strategy does not need to sell any of its Bitcoin holdings.
“STRC does not exist to pay a dividend. It exists to buy Bitcoin,” the analysts wrote. “The dividend is the cost of keeping the machines running.”
They further explained that every dollar used to purchase STRC creates buying pressure for Bitcoin, while selling STRC shares cannot create selling pressure for BTC. This structural distinction means ETFs can drain liquidity from Bitcoin markets, whereas STRC cannot.
The report also highlighted that Strategy can only issue new STRC shares when the stock trades at or above its $100 par value. Any capital raised above that threshold is directed toward Bitcoin purchases, making continued issuance highly dependent on price stability.
Why Volatility Has Become the Key Variable
Pine Analytics argued that the relationship extends beyond the mechanics of share issuance. In leveraged markets, lower volatility results in smaller collateral haircuts, which increases borrowing capacity for institutions holding the asset. This dynamic encourages larger institutional allocations.
Since STRC launched, its 30 day rolling volatility has reportedly fallen from 18% to roughly 2%. As volatility declined, institutions were able to increase their position sizes. More institutional capital would then support additional at the market share issuance, leading to more Bitcoin purchases and a stronger balance sheet for Strategy. In turn, that stronger balance sheet could help stabilize STRC even further, creating a self reinforcing cycle.
According to the latest figures published on Strategy’s website, STRC’s 30 day historical volatility currently sits near 4.2%, while the stock trades slightly below par at $99.47. Pine Analytics noted that this discount matters. A BitcoinQuant chart referenced in a follow up post showed noticeable price pressure across Strategy’s preferred stock series since March, with analysts warning that “this does not look good.”
The report pointed to the risks tied to this fragility. Earlier in the year, a routine ex dividend decline temporarily halted issuance activity and reduced weekly Bitcoin purchases from 17,994 BTC to just 1,031 BTC. Analysts cautioned that a more serious credit event, where the stock loses its peg and fails to recover, could completely shut down the at the market issuance program and eliminate one of the largest structural sources of Bitcoin demand.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic
