- Strategy (formerly MicroStrategy) now holds 607,770 BTC, just shy of the 620K mark.
- Polymarket gives a 58% chance of hitting 620K BTC by August, up 21% in one day.
- The firm’s $2B “Stretch” Preferred Stock offers a 9% yield, backed indirectly by BTC.
The odds are climbing that Strategy (formerly MicroStrategy) will hit the 620,000 BTC milestone in its holdings before August. According to the prediction market Polymarket, the probability has surged to 58%, a 21% jump in the last 24 hours alone.
The firm currently holds 607,770 BTC, acquired at an average price of $71,756. This puts Strategy within striking distance of the target as Bitcoin itself trades near $119,000, just shy of its all-time high of $123,000.
Institutions vs. Short-Term Traders
This buying momentum comes amid a broader institutional scramble to accumulate Bitcoin and Ethereum, even as short-term on-chain traders, those holding BTC for 1 to 3 months, see just 13% in unrealized profits.
While this group has historically taken profits when their gains exceeded 150% at previous cycle tops, their current muted profit levels suggest there is far less immediate selling pressure. This reduced volatility makes it easier for a major buyer like Strategy to continue accumulating without causing a sharp, disruptive price spike.
Related: Is Michael Saylor Dismissing the Future of Altcoins Too Soon?
New $2B preferred stock is funding the strategy
Strategy’s financial approach has also taken a dramatic turn with the recent launch of its $2 billion “Stretch” Preferred Stock (STRC). The offering was initially sized at just $500 million but was quadrupled due to surging investor demand.
The STRC offers a variable 9% dividend and is designed to trade around a stable $100 par value, a unique feature for a product indirectly linked to a highly volatile asset.
While the new stock doesn’t give investors direct exposure to Bitcoin, it is structured to benefit from the company’s massive holdings.
The goal: Generate yield without selling the underlying Bitcoin
A recent NYDIG report describes it as a “high-yield, bitcoin-backed, money-market-style vehicle” that offers a far more attractive yield than traditional short-term instruments, yet with a different liquidity and risk profile.
Related: Strategy’s Bitcoin Bet Pays Off, Now Holds the №11 Largest US Corporate Treasury
With $71.7 billion in Bitcoin assets against only $11 billion in liabilities, Strategy is betting it can generate income for investors without selling its holdings. The company aims to convert BTC’s historical 3%–4% annualized return (and often much higher) into consistent cash flow.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
