NYDIG believes that Strategy's STRC and similar preferred equity instruments like Strive's SATA are widely misunderstood, noting that these instruments are not traditional credit but rather actively managed liability structures backed by Bitcoin and dependent on capital market access. The company points out that Strategy issued approximately $1.2 billion in STRC last week, bringing its total outstanding STRC to over $5 billion, with preferred equity totaling over $10 billion. NYDIG describes this as a "flywheel effect": issuing STRC at prices near par value to fund Bitcoin purchases, thereby strengthening the balance sheet to support further issuance, which depends on sustained investor confidence and market conditions rather than operating cash flow.