Benchmark refutes "circular financing" allegations: Strategy STRC Bitcoin model is not a Ponzi structure

Odaily Odaily reports that market disagreements continue to widen around Strategy's financing model of continuously accumulating Bitcoin through its preferred stock STRC. Benchmark analyst Mark Palmer stated in his latest report that the view interpreting the STRC model as a "circular financing or Ponzi structure" is a "significant misreading," emphasizing that the mechanism is an "intentionally designed and sustainable capital framework," with the core logic being to convert market demand for yield into long-term Bitcoin exposure.

According to SEC 8-K filings, Strategy raised approximately $3.5 billion in the first three weeks of April, with over 85% coming from STRC issuance. Subsequently, the company made three consecutive purchases within the following three weeks, acquiring a total of 51,364 Bitcoins worth approximately $3.9 billion. Currently, Strategy's Bitcoin holdings have increased to 818,334 BTC, with a market value of approximately $62.5 billion, and have recently returned to a state of approximately $700 million in unrealized profit.

Benchmark believes that the structure does not rely on continuous issuance to sustain itself and could even sell some Bitcoin to pay preferred stock dividends if necessary. However, significant skepticism remains in the market, with some arguing that if the sale of financing assets to pay dividends occurs, it could be perceived as a risk signal, triggering broader market pressure. (The Block)