Michael Saylor describes Strategy’s mechanism as a triple flywheel: rising bitcoin prices strengthen reserves, reduce credit risk, compress spreads, enable the company to issue more shares and therefore buy more bitcoin. According to the article, MSTR and STRC reached a combined market capitalization of $475 million, up 3,467% over one year, while Strategy’s daily trading volume reached $2.90 billion. Between September 14 and October 18, the company spent nearly $888 million on preferred-stock buybacks, compared with $290 million on bitcoin purchases, reducing cash reserves from $1.3 billion to $447.3 million. Whales accumulated 88,987 BTC, far more than Strategy’s 3,466 BTC purchases, but STRC’s liquidity as the largest and most liquid US perpetual preferred stock, according to the article, suggests that bitcoin accumulation could continue. At the time of publication, STRC traded at $99.49, MSTR at $141.40 and bitcoin at $81,447.23.
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