Benchmark strongly supports the Strategy STRC model: it is not a circular financing scheme, but rather a long-term funding engine for bitcoin.

Odaily reported that debate in the market is intensifying regarding Strategy’s financing model of continuously increasing Bitcoin holdings through preferred shares (STRC). Benchmark analyst Mark Palmer stated in his latest report that it is a “serious misinterpretation” for outsiders to label the STRC model as “circular financing or Ponzi structure.” He emphasized that this mechanism is an “intentionally designed and sustainable capital framework,” with the core logic being to turn demand for returns in the market into a long-term Bitcoin exposure.

According to SEC 8-K filings, Strategy raised approximately $3.5 billion in total during the first three weeks of April, of which over 85% came from STRC issuance. In the following three weeks, the company purchased a total of 51,364 Bitcoins in three consecutive transactions, worth about $3.9 billion. Currently, Strategy’s Bitcoin holdings have increased to 818,334 coins, with a market value of approximately $62.5 billion, and recently returned to an unrealized gain of about $700 million.

Benchmark believes that this structure does not depend on continual issuance to remain operational, and if necessary, dividends on preferred shares could even be paid by selling part of the Bitcoin holdings. However, notable skepticism remains in the market, with some arguing that if assets must be sold to pay dividends, it may be seen as a risk signal and trigger broader market pressure. (The Block)