An MSCI index eligibility ruling expected on November 11 could act as a near-term catalyst, drawing institutional interest to Strategy.

STRC is a perpetual preferred stock with a 12% annualized dividend aimed at stable income, while Strategy’s common shares tend to track bitcoin more closely.

Saylor had signaled a forthcoming bitcoin bull market around Strategy’s Oct. 29 earnings, citing growing bank adoption and renewed institutional demand as BTC traded above its long-term moving average.

Strategy’s latest move sees STRC trading above $100, which could enable the company to issue additional STRC shares through its at-the-market program to fund bitcoin purchases, reversing earlier buybacks intended to support the stock’s price.

About $2 billion of STRC buybacks since July aimed at supporting the preferred stock after it dipped below $100, with daily dividends introduced on Nov. 1 to stabilize the price.

In a Nov. 2 SEC filing, Strategy disclosed it purchased 811 Bitcoin for roughly $65.5 million between Oct. 26 and Nov. 1, bringing total holdings to 849,327 BTC.

Fidelity Digital Assets’ analysis aligns with the idea that perpetual preferred stock could attract institutional Bitcoin demand, though it notes dividends must be paid even if Bitcoin prices fall, creating risk for issuers.

Markets showed risk-off to risk-on shifts, with the Nasdaq down about 5.5% and the S&P 500 down around 4.4% as Bitcoin slipped roughly 5%, marking a notably volatile session for equities.

Strategy reported strong third-quarter operating income of $20.91 billion, net income of $19.53 billion, revenue $125.4 million, and U.S. dollar assets of $5.07 billion as of Oct. 25, suggesting about 3.4 years of coverage for preferred dividends and interest.

The macro backdrop featured a risk-on rally following a Democratic win in the U.S. midterms, reducing political uncertainty and lifting crypto-linked equities like Strategy.

The quarter highlighted substantial operating income largely from unrealized gains, a negative BTC yield year-to-date, and a CFO transition, with STRC and related STRs relying on BTC sales and new preferred issuances to cover dividends.

Analysts generally remain constructive: Maxim Group and HC Wainwright have Buy ratings with lofty targets, while B. Riley trimmed its target but maintained a Buy on updated Bitcoin price assumptions.