Bitcoin's Boom Past $75K Driven By Strategy's STRC $1.16B Record Trading Day, Says Analyst

• STRC recorded $1.16 billion in trading volume, marking its highest single-day activity on record.
• According to crypto investor and analyst Lark Davis, the structure of Strategy’s ATM program allowed the company to potentially raise around $796 million in a single session.
• He noted that the capital could translate into the purchase of roughly 10,800 Bitcoin, far exceeding daily mining supply.

Bitcoin (BTC) shot past $75,000 on Tuesday morning and it may have been because of Strategy’s (MSTR) Variable Rate Series A Perpetual “Stretch” Preferred Stock (STRC) logging over $1 billion in trading volume. 

“If you’re curious as to what’s driving Bitcoin’s price, look no further than Strategy’s STRC product,” cryptocurrency investor and analyst Lark Davis wrote in a newsletter. He pointed out that STRC recorded $1.16 billion in trading volume, marking its strongest single-day performance to date. Davis noted that all shares traded during the session were executed at or above the $100 par value. 

Strategy’s STRC ATM program only triggers when shares are traded at par value or higher. Meaning, Strategy was able to fully deploy their ATM yesterday. MSTR’s stock rose 5.8% in midday trade on Tuesday, with retail sentiment around the Bitcoin proxy on Stocktwits rising to ‘neutral’ from ‘bearish’ territory over the past day. Chatter increased to ‘high’ from ‘normal’ levels. 

Meanwhile, Bitcoin’s price gained over 5% in the last 24 hours to around $75,200, paring gains after hitting an intra-day higher of over $75,800. Retail sentiment around the apex cryptocurrency on Stocktwits trended in ‘bullish’ territory over the past day, accompanied by ‘high’ levels of chatter.  

STRC Trading Surge Unlocks Fresh Bitcoin Buying Power

Davis estimated that Strategy could have generated roughly $796 million in proceeds, which could translate into the purchase of approximately 10,800 Bitcoin. He added that the scale of buying far exceeds Bitcoin miner’s daily mining output. 

By comparison, Davis noted the company raised around $1 billion through ATM activity during the week of April 6 to April 12, its second-largest weekly total after Monday’s burst of buying. The latest session alone appears to approach that level in a single day.

The STRC live tracker showed the preferred shares continued to see trading activity above its $100 threshold on Tuesday, with around $6.2 million in volume recorded at those levels by midday trade.

MSTR’s stock has fallen over 9% year-to-date, while Bitcoin’s price is down nearly 14% so far this year. 

Read also: Ethereum Outperforms Bitcoin As US-Iran Peace Deal Hopes Spark Over $400 Million Crypto Short Squeeze

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