Strategy’s Bitcoin holdings could grow 13%-34% if STRC scales to $10-$20 billion in notional value by the year 2028
STRC, Strategy’s Variable Rate Series A Perpetual Preferred Stock, is drawing growing institutional attention as the Federal Reserve advances its rate-cutting cycle into 2026.
U.S. money market funds now hold $7.79 trillion, currently yielding between 4.5% and 5%. Analysts project yields on those funds could fall by 300 basis points.
That drop could push hundreds of billions toward high-yield alternatives. Trading near $100 par on Nasdaq and paying 11.25% annually, STRC stands positioned at that crossroads.
U.S. money market fund yields remain elevated from the prior rate-hiking cycle. However, the Fed has already moved 125 basis points into the current easing cycle, with markets pricing in another 75-100 basis points ahead.
Analysts expect front-end yields to compress toward 1%-2%, replicating the post-2008 and 2020 patterns.
A 300-basis-point decline across $7.79 trillion in money market assets equals roughly $233.7 billion in lost annual income.
Pensions, insurers, and corporate treasuries cannot simply absorb that loss. They are historically known to pursue higher-yielding alternatives when safe returns erode.
EPFR and McKinsey data indicate that for every 100-basis-point drop in short-term rates, alternative and high-yield vehicles see 10%-20% accelerated inflows within 12-18 months.
A 5%-10% rotation out of money markets alone could direct $390-$780 billion toward private credit, listed preferred stocks, and similar instruments.
STRC currently trades at $99.82 with an effective annual yield of 11.27%, paying dividends every month. Its notional value already stands at $3.458 billion. Average daily trading volume runs at approximately $128 million, reflecting growing market participation.
Analyst Adam Livingston wrote on X: ”
He added that Strategy holds $2.25 billion in cash reserves, covering more than 2.5 years of dividends at 5.6 times overcollateralization.
If only 0.5% of projected capital rotation flows into STRC, that equals $2-$4 billion in new capital. At $100 par, that creates 20-40 million new shares issued. Proceeds from those shares go directly toward Strategy’s Bitcoin acquisition program.
Each $1 billion raised through STRC issuance allows Strategy to purchase approximately 14,700 Bitcoin at a $68,000 spot price.
A $4 billion capital inflow translates to roughly 58,800-80,000 additional Bitcoin removed from the open market.
Strategy currently holds 717,000 BTC. Analysts project STRC could scale to $10-$20 billion in notional value by 2028.
That growth range would add an estimated 95,000-242,000 Bitcoin to Strategy’s treasury, a 13%-34% increase in total holdings.
That accumulated buying would represent 8%-11% of annual Bitcoin issuance. Livingston noted:
Post-GFC private credit grew more than seven times as rate cuts redirected capital toward yield-bearing alternatives, and Bitcoin compounded sharply during each of those liquidity-driven periods.
