MicroStrategy’s STRC, not miners, now sets Bitcoin price

Michael Saylor, executive chairman of MicroStrategy, told investors the company’s STRC preferred stock has become the dominant buyer of newly issued bitcoin and now absorbs miner output. He said MicroStrategy will likely buy every bitcoin produced by miners until 2140.

MicroStrategy launched STRC in July 2025. Company figures show the instrument reached about $10.5 billion in notional value roughly ten months after launch, with about $2 billion issued in the most recent month. MicroStrategy holds roughly $65 billion in bitcoin on its balance sheet. Public commentary and filings indicate the firm purchased more bitcoin this year than miners produced.

STRC is structured as preferred stock that pays a monthly dividend set at 11.5% and resets to keep the share price near its $100 par value. Company materials describe the structure as converting expected bitcoin appreciation into a tax-deferred yield for credit investors while directing capital to additional bitcoin purchases.

Market participants have raised questions about the program’s durability. Some observers point to a potential ceiling in demand and to periods of reduced buying volume that can expose the instrument to selling pressure after dividend dates. Others have noted MicroStrategy’s cash reserves have been drawn down and estimate available cash would cover roughly 15 months of current activity at recent levels.

Analysts say the next bitcoin halving, expected in 2028, will reduce miner issuance again and test whether STRC and other capital channels can scale without compressing yield or straining liquidity. Bitcoin’s scheduled issuance halves about every four years and new issuance declines toward zero near 2140. Saylor frames the shift as a change in which market participants set price, moving influence from miner sales to structured credit and institutional demand.