‘Not circular': Benchmark defends Strategy's STRC bitcoin accumulation model

Benchmark analyst Mark Palmer defended Strategy’s STRC preferred-stock funding model against critics who call it “circular,” arguing STRC converts yield demand into durable, long-term bitcoin exposure rather than recycling capital in a vacuum. STRC is a variable-rate, perpetual preferred that targets a $100 peg and pays about an 11.5% dividend. Strategy raised roughly $3.5 billion in the first three weeks of April (over 85% via STRC) and used proceeds for three weekly buys totaling 51,364 BTC (worth ~ $3.9 billion). Strategy now holds 818,334 BTC (≈ $62.5 billion) and is back in unrealized profit. Benchmark says Strategy could sell bitcoin to cover dividends if needed; critics warn such sales would spook markets. Grayscale’s note countered that spot-bitcoin ETFs remain the “cleanest” way for investors to gain exposure.