Stretch Target
Strategy’s preferred stock STRC just hit $100 for the second time, but this time feels different, and I think it’s quite likely Strategy’s Bitcoin accumulation engines are about to fire back up again.
G’day Folks,
There was a tremor in the financial engineering force last week, and I believe it has meaningful implications for Bitcoin moving forwards.
Strategy’s preferred stock STRC ‘Stretch’ reached the target $100 face value for the second time to date. The notable difference compared to November is that it has so far stayed there, even after a declared dividend date.
Unless you’re deep in the weeds tracking all of these exotic preferred stocks, it can be a challenge to unravel what these preferred stocks actually mean for Bitcoin.
In today’s post, I want to cover why I believe STRC reaching $100 face value is a pretty big deal, and why it signals to Strategy that they have finally landed on product market fit.
I will also explore the interplay between two of the larger demand vectors for Bitcoin (Strategy and the ETFs), in comparison with the marginal sell-side pressure coming from HODLers.
What I am looking for is evidence of a resurgence of new demand relative to new marginal supply. There is a pretty neat relationship that has played out between these two forces over the course of this market cycle, with cross-overs helping to distinguish genuine bullish impulses from languishing sideways chop.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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