Institutional funds more than doubled their average stake in Strategy’s STRC preferred stock between March and July 2026, while retail holders retreated. CEO Phong Le casts the shift as Wall Street supplying long-term liquidity for the firm’s Bitcoin buying; critics call it an opportunistic trade, not conviction.
Institutional money is moving into Strategy’s Bitcoin operation. Ahead of the company’s Q2 2026 earnings report scheduled for July 30, CEO Phong Le disclosed internal figures for the period from March to July 2026 covering its “Stretch” preferred stock, STRC.
Le said the average position held by institutional funds in STRC surged 105% to $3.5 million per fund over that stretch. That entry came at retail’s expense: retail ownership fell from 78% to 71% across the same months. Le summed up the trend: “The institutions are coming.”
How STRC drew $756 million from BlackRock and VanEck
Chairman Michael Saylor said STRC has become the largest single holding in three leading U.S. preferred stock ETFs, with a combined $756 million held across BlackRock’s PFF, Virtus InfraCap’s PFFA, and VanEck’s PFXF. Management presents the 105% jump in institutional participation as a stabilizing factor for its “purchasing machine,” arguing that Wall Street is prepared to supply the company with long-term liquidity.
Why skeptics call the surge a trap
Not everyone reads the numbers that way. Prominent stockbroker Peter Schiff challenged the bullish narrative, arguing that the capital shift conceals a harsh reality for ordinary investors and represents a purely opportunistic Wall Street trade. He said the decline in retail ownership most likely means smaller investors capitulated and locked in losses during recent crypto market corrections, and suggested the funds behind the increase do not necessarily believe in Bitcoin’s long-term appreciation.
Strategy reports its Q2 2026 figures on July 30. The stakes are concrete: Bitcoin’s recent decline to $65,000 has left the company with a temporary unrealized loss of $1.25 billion for the current quarter, and market opinion remains divided.
Source: U.Today
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