The European Union has placed Justin Sun-linked HTX among 18 crypto companies accused of helping Russian users evade financial sanctions.

According to Reuters, the EU published the list on Friday after adopting its latest restrictions on Thursday, adding another regulatory challenge for one of the world’s largest crypto exchanges.

HTX, formerly known as Huobi, did not immediately respond to Reuters’ request for comment on the EU action. The exchange was founded in China in 2013, while Sun acquired a controlling stake in 2022, although the company describes the Tron founder as an adviser.

EU authorities included the crypto companies in the bloc’s 21st sanctions package against Russia over the war in Ukraine. The measures cover banks, crypto networks, oil traders, energy revenue channels and vessels suspected of operating within Russia’s shadow fleet.

While Reuters reported that 18 companies offering crypto services appeared on the published list, the Council of the European Union separately said it had extended transaction restrictions to 14 crypto-related platforms. Those services operate from Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus.

The difference relates to how the measures count companies and the platforms they operate. According to the Council, the 14 services were targeted because EU authorities linked them to financial channels used by Russia to bypass existing restrictions.

HTX faces transaction limits rather than an EU asset freeze

Unlike a full sanctions designation, the EU measure against HTX does not require the exchange’s assets to be frozen, Reuters reported. The restriction instead places HTX within the group of crypto businesses covered by the package’s transaction controls.

For the first time, the package also gives the EU a mechanism to prohibit dealings with crypto providers in third countries when authorities determine that those services are helping Russia evade sanctions. The Council described the tool as a deterrent for jurisdictions hosting such platforms.

HTX had already faced sanctions in the United Kingdom. On May 26, British authorities targeted Huobi Global S.A., the Panama-based company behind HTX, over alleged financial services involving A7 and Garantex, two entities previously sanctioned over their links to Russia.

The UK Foreign Office alleged that HTX provided services to A7, a payments network backed by Russian state-controlled Promsvyazbank, and Moscow-based crypto exchange Garantex. British restrictions included an asset freeze and barred UK companies from processing payments or maintaining financial relationships with the designated entities.

Responding to the UK action, an HTX spokesperson rejected suggestions that the exchange disregarded regulatory requirements.

“Regulatory compliance remains our absolute top priority at HTX. We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK,” the spokesperson told Reuters.

The exchange has not issued a corresponding response to the EU restrictions. Its earlier statement addressed only the British allegations and did not comment on the findings behind the EU package.

Beyond crypto, the Council imposed asset freezes and funding restrictions on 94 banks and major financial institutions. Transaction bans were also extended to another 33 Russian credit and financial institutions, one Kyrgyz bank connected to Russia’s System for Transfer of Financial Messages and three other non-Russian banks accused of helping circumvent sanctions.

EU crypto controls now reach ownership and management

Adopted on July 23, the package contains 218 individual listings, including 48 people and 170 entities. The Council called it the bloc’s largest batch of new listings in four years, spanning financial services, energy companies, military suppliers and organizations accused of supporting sanctions evasion.

EU High Representative Kaja Kallas stated that the measures cover more than 100 banks and crypto operators, over 40 vessels tied to Russia’s shadow fleet and several refineries in Russia and Belarus. More than 50 listings involve Russia’s military-industrial sector, including businesses connected to long-range drone production, according to Kallas.

Separate restrictions adopted through Council Decision (CFSP) 2026/1847 will also affect Belarusian participation in the EU crypto industry. Beginning Aug. 25, Belarusian nationals and residents will be prohibited from owning, controlling or managing crypto-asset service providers regulated under the Markets in Crypto-Assets framework.

Previous restrictions focused on companies offering crypto wallets, accounts and custody services. The amended rules expand the ban to every service category defined under MiCA, including operating trading platforms, exchanging crypto assets, executing client orders, processing transfers, placing tokens, providing investment advice and managing portfolios.

The Belarus measure entered into force on July 24, one day after its adoption, although the crypto ownership and management provisions have a one-month implementation period. It follows the end of MiCA’s transition window on July 1, after which unauthorized crypto firms were required to stop operating or face enforcement measures.

Together, the two decisions place foreign crypto platforms and ownership roles inside regulated EU firms under separate sanctions controls. HTX now faces transaction restrictions connected to alleged Russian activity, while Belarusian nationals and residents will encounter direct limits on their participation in MiCA-authorized businesses.

Odos Protocol has announced plans to shut down its decentralized exchange aggregator, giving users until July 30 to withdraw assets from the platform.

According to a Thursday announcement posted on X, the project will discontinue operations and has asked users to remove funds before the deadline. The team did not disclose why it decided to wind down the service.

Users have until July 30 to complete withdrawals before the platform ceases operations. The announcement did not indicate whether any extension would be offered or whether services would remain available after the deadline.

At the same time, the team clarified that the Odos DAO operates independently from the company behind the protocol. It said the DAO will communicate its own plans separately, while adding that the ODOS token will continue to exist onchain despite the shutdown of the operating business.

No changes to the token’s functionality, supply, or governance were announced alongside the closure notice. The statement also did not mention any security incident, regulatory issue, funding challenge, or acquisition connected to the decision.

Trading activity had fallen sharply since late 2024

The shutdown follows a prolonged decline in activity on the protocol over the past two years.

Data from DefiLlama shows Odos recorded approximately $169 million in DEX aggregator trading volume during July 2026. That compares with a monthly peak of roughly $7.8 billion reached in December 2024, when decentralized trading activity across multiple networks was considerably higher.

DefiLlama data also estimates the protocol generates about $2.72 million in annualized revenue. While the figures illustrate how activity has changed over time, the Odos team did not attribute the shutdown to declining trading volume or revenue.

Instead, the project’s public announcement remained limited to operational details, user withdrawal instructions, and clarification regarding the separation between the operating company and the Odos DAO.

Existing users have therefore been encouraged to focus on withdrawing assets before the July 30 deadline. The announcement did not mention any modifications to the withdrawal process or identify assets that would be affected differently during the wind-down.

DAO and token remain separate from the operating company

Although the protocol’s operating business is shutting down, the announcement distinguished it from the decentralized governance structure.

According to the team, the Odos DAO will announce its own next steps independently. No timetable was provided for those announcements, and the DAO has not yet disclosed whether governance activities, treasury management, or future ecosystem initiatives will change after the operating company closes.

Similarly, the ODOS token was not included in the shutdown plans beyond confirmation that it will continue to exist onchain. The announcement did not describe any migration, token swap, redemption program, or governance proposal associated with the closure.

For token holders, that means the shutdown currently applies to the operating company rather than automatically affecting the token itself.

More crypto platforms have announced closures in 2026

Odos joins a growing list of crypto companies and decentralized finance projects that have announced plans to wind down operations this year, although the reasons behind those decisions have varied considerably.

Earlier on Thursday, derivatives exchange BitMEX said it would cease operations after 11 years in business. The exchange outlined a phased shutdown process, with customer services being retired according to a scheduled timeline.

Security incidents have also forced several projects to discontinue operations. For instance, in June, crypto payments platform Pyra announced it would shut down after concluding it could not establish a sustainable path forward following losses tied to the Drift exploit. 

The company immediately stopped accepting new customers, canceled all payment cards, and introduced a transition plan that allows existing users to withdraw balances and export private keys through a dedicated web portal until Sept. 15, 2026. Pyra also said it intends to distribute any future Drift recovery tokens to eligible users if those tokens become available.

Meanwhile, in May, Carrot protocol said it would discontinue operations after liquidity providers withdrew significant capital following the Drift exploit. The protocol explained that the resulting collapse in total value locked left it unable to continue operating despite efforts to recover. Users were provided time to withdraw remaining assets before services were fully retired.

Odos has not linked its own decision to either category. The project’s announcement did not identify declining activity, market conditions, funding constraints, security breaches, or technical problems as reasons for discontinuing operations. 

For now, the only date provided by the project is July 30, when users are expected to complete withdrawals before the operating platform shuts down. The team has said the DAO will provide separate updates regarding its future plans.

World Foundation has raised $52.5 million through a strategic WLD token sale as it accelerates the rollout of its World ID identity network, with all purchased tokens locked for one year.

World Foundation announced on Friday that it completed the first close of a strategic WLD token sale, raising $52.5 million from a group of crypto-focused investors to support the expansion of its proof-of-human infrastructure. The nonprofit said every WLD token sold in the transaction will remain locked for one year.

Pantera Capital led the first close of the fundraising, while Bain Capital Crypto, WLD treasury company Eightco Holdings (Nasdaq: ORBS), Selini Capital, Susquehanna Crypto and several other investors also participated. Although the foundation described the fundraising as the “first close,” it did not confirm whether additional rounds are planned. A spokesperson declined to comment when asked whether more token sales would follow.

Unlike an equity financing, the foundation said the WLD purchased in the transaction is intended solely for use within the World Network ecosystem. According to the organization, the tokens do not provide ownership in Tools for Humanity, the company responsible for developing the project’s software and hardware, nor do they grant rights to profits or investment returns.

Fresh capital from the fundraising will be directed toward expanding World ID for enterprises, consumers and AI agents across international markets, the foundation said. The announcement comes as the organization says it is entering a new phase focused on increasing real-world use of its identity network after spending the past three years building the protocol.

World shifts focus toward enterprise adoption

As artificial intelligence systems become more capable, World Foundation said demand is rising for technology that can distinguish real people from automated agents online.

World allows users to verify they are unique humans by completing a one-time Orb scan, which generates a World ID without revealing their identity. According to the foundation, users keep their World ID on their own devices, while the verification process relies on advanced cryptography and anonymized multi-party computation that has been open-sourced to protect privacy.

Pantera Capital General Partner Cosmo Jiang said the acceleration of AI development has increased the need for proof-of-human technology as more businesses look for ways to verify online identities. He added that the investment firm continues to support World’s long-term mission as enterprise adoption grows.

Alongside the fundraising announcement, the foundation pointed to the release of World ID 4.0, which it said is designed for enterprise-scale deployments. The latest version enables developers to build additional identity credentials using zero-knowledge proofs while integrating them into the broader World ID framework.

According to the organization, World ID has already been integrated with services including Zoom, DocuSign, Okta, Vercel and Tinder. The foundation also said more than 39 million people have joined World Network, while over 18 million users have completed Orb verification. Since launch, the network has processed more than 475 million World ID proofs, which are generated whenever users verify their identity while accessing supported applications or services.

The organization also said applications ranging from digital advertising and online dating to voting platforms, creative marketplaces and video communication services could face increasing challenges from AI-generated content, synthetic identities and deepfakes without proof-of-human infrastructure.

Funding extends earlier capital raises

The latest financing follows another major fundraising completed earlier this year.

In May, World Foundation raised $135 million through a strategic WLD sale led by Andreessen Horowitz and Bain Capital Crypto. At the time, the foundation said the proceeds would expand the World ID ecosystem, while investors purchased WLD tokens at market value. Following that announcement, WLD climbed roughly 10% in a day as trading volumes and derivatives activity increased sharply.

Including the latest fundraising, World Foundation and its related entities have now raised approximately $200 million through WLD token sales, according to the organization. Separately, Tools for Humanity has secured around $240 million in venture equity funding. Combined, the World ecosystem has raised roughly $492.5 million to date.

Expansion continues alongside regulatory and governance scrutiny

While the network has continued to grow, regulatory scrutiny has remained a recurring challenge for the project.

Authorities in Spain, Kenya, Brazil, Indonesia, South Korea, Hong Kong and the Philippines have investigated, restricted, suspended or fined parts of World’s biometric identity verification operations over concerns involving privacy, user consent and data protection. The foundation said it continues engaging with regulators as the network expands into additional markets.

At the same time, governance and token ownership have also drawn attention following recent regulatory filings.

A registration statement submitted by Grayscale for its proposed spot Worldcoin ETF disclosed that the 100 largest wallets controlled about 90% of WLD’s circulating supply at the time of filing. The asset manager presented the ownership concentration as a material risk for prospective investors while also stating that governance of the network continues to be substantially influenced by the World Foundation.

Grayscale’s filing also noted that World Chain currently relies on a centralized sequencer, while upgrade authority remains shared among entities associated with the World Foundation, Tools for Humanity and Optimism. The filing further said Orb devices continue to be manufactured and distributed primarily under the direction of Tools for Humanity.

The ETF proposal followed Nasdaq’s filing to list the proposed Grayscale Worldcoin ETF under the ticker GWLD. If approved by U.S. regulators, the trust would hold WLD directly and provide investors with exposure to the token through traditional brokerage accounts instead of requiring direct custody.

Senate Majority Leader John Thune has ruled out passage of the CLARITY Act before the August recess, as Polymarket traders cut its chance of becoming law in 2026 to 33%.

Fortune reported on July 24 that Thune does not expect the Senate to approve the crypto market structure bill before lawmakers leave Washington, removing a deadline that industry supporters had viewed as critical to its passage this year.

Attention has now moved to the short period after the November midterm elections, when Congress will return with government funding measures, defense legislation and other unfinished business competing for floor time. Ron Hammond, head of policy and advocacy at Wintermute, told Fortune that the bill still has enough bipartisan support but has become caught in election-year disputes.

Hammond argued that political messaging, rather than an absence of Senate votes, has become the immediate problem. With Democrats preparing to campaign against President Donald Trump and alleged corruption, he expects some lawmakers to avoid supporting a major crypto bill before voters go to the polls.

“The votes are there, but the election politics are louder. The latter will dissipate after November and that’s a narrow but very possible window,” Hammond told Fortune.

Election politics has become the main obstacle

A dispute over Trump’s crypto businesses has complicated negotiations even after Republicans signaled that they would consider limits on digital asset activity by elected officials. Senate Democrats have demanded provisions preventing senior government figures from using public office to profit from crypto ventures.

Under the latest draft, ethics restrictions involving Trump and other federal officials would be enforced through the Department of Justice. Several Democratic lawmakers have rejected that approach because the department operates under the executive branch and, in their view, should not hold sole enforcement power over a sitting president.

Seven Senate Democrats have also opposed the updated text over ethics, consumer protection and enforcement concerns, according to a July 23 crypto.news report. Republicans hold 53 Senate seats and would need support from at least seven Democrats to reach the 60 votes usually required to advance the legislation.

Senate Minority Leader Chuck Schumer has encouraged Democrats to center their midterm message on allegations of corruption involving Trump, Fortune reported. Hammond believes that strategy could make Democratic senators less willing to hand the administration a legislative victory before November, even if they support federal crypto rules in principle.

Banking groups have added another source of resistance by opposing provisions that could allow rewards on stablecoin holdings. Those associations have warned that such products could pull customer deposits away from traditional banks, reducing funds available for lending.

According to Hammond, banks and other opponents used the extended negotiations to push the bill beyond an important deadline. Their campaign has kept disputes over stablecoin rewards, regulatory authority and ethics controls open while the remaining Senate calendar has continued to shrink.

Goldman Sachs CEO David Solomon, however, has separated his position from banking trade groups seeking tougher restrictions. As reported by crypto.news, Solomon was “very supportive” of advancing the legislation because it would establish a U.S. crypto market structure and give digital asset companies clearer operating rules.

While acknowledging that lawmakers could still debate parts of the proposal, Solomon argued that Congress should not abandon the entire framework because it remains imperfect. He believes the legislation could support market stability and place companies under more consistent rules, although he did not specifically endorse the disputed stablecoin reward language.

Passage odds have fallen to 33%

Crypto executives have continued pressing Congress to act despite the shrinking timetable. Ripple CEO Brad Garlinghouse backed comments from the company’s chief legal officer, Stuart Alderoty, who urged lawmakers not to abandon an achievable bill while searching for a perfect compromise.

Coinbase CEO Brian Armstrong has also argued that the bipartisan proposal is ready for Senate consideration after months of negotiations, according to crypto.news. Those appeals have not produced a scheduled vote, while Thune’s assessment indicates that the chamber will enter recess without resolving the remaining disputes.

Prediction-market traders have responded by cutting their expectations further. Polymarket now gives the CLARITY Act a 33% chance of becoming law in 2026, with more than $2.56 million wagered on the contract.

Polymarket’s chart shows that the odds climbed above 80% in late February before losing ground over the following months. The probability fell toward 30% in July as ethics disputes, banking opposition, and the approaching recess weakened confidence in passage.

Once lawmakers return after the elections, Hammond expects a narrow opportunity in which campaign pressure may ease enough to restart negotiations. Fortune reported that the effort would still compete with funding deadlines and defense legislation, leaving senators limited time to settle the remaining ethics, banking and enforcement disputes.

Strive’s variable-rate perpetual preferred shares, SATA, have rebounded sharply after hitting a June low of $83.30, rising to around $97 and recovering most of the selloff, according to Yahoo Finance data. The improvement has placed the shares within roughly 3% of their $100 par value.

The price recovery matters because SATA is part of a broader, fast-growing approach among Bitcoin-treasury companies: using preferred equity designed to trade close to par. The objective is to raise capital for a corporate Bitcoin (BTC) treasury without issuing more common stock, while dividends adjust to support the shares’ pricing.

Key takeaways

• SATA has climbed from a June low of $83.30 to roughly $97, putting it about 3% below its $100 par value, per Yahoo Finance.
• Strive introduced SATA in November 2025 to fund expansion of its Bitcoin treasury through preferred equity rather than additional common share issuance.
• Preferred-share “digital credit” strategies are increasingly being used by Bitcoin-treasury firms to structure financing around dividends that can adjust over time.
• Strategy’s STRC experienced a similar late-June decline but has partially recovered, trading around $87—still below par.

How SATA is structured and why it exists

Strive introduced SATA in November 2025 as part of its effort to finance expansion of its Bitcoin treasury through preferred equity. In Strive’s announcement about the Nasdaq listing and the related closing of an oversubscribed upsized IPO, the company described SATA as a variable-rate perpetual preferred designed to trade near $100 par by adjusting its dividend rate.

That structure is intended to offer investors a mechanism to “anchor” valuation around par without requiring Strive to repeatedly issue common shares. For the company, it creates a financing channel that is directly tied to the treasury-building thesis—supporting Bitcoin accumulation while attempting to manage the equity dilution burden that comes with selling additional common stock.

Strive’s approach also reflects a wider market trend. The article notes that SATA is one of several preferred-share products linked to Bitcoin treasury strategies, a segment some market participants describe as “digital credit.”

June selloff: SATA recovered, STRC remains below par

The key datapoint for traders is the swing back toward par. Yahoo Finance data shows SATA fell to $83.30 in June before recovering to about $97. While that still leaves room for improvement, the rebound suggests that the market is rewarding the shares’ par-focused design after periods of heightened stress.

Strive’s preferred structure sits within a peer set that includes Strategy’s STRC. Strategy’s preferred-like product was launched in 2025 with a similar objective—maintaining a $100 share price through a variable dividend. According to Yahoo Finance, STRC fell sharply during the late-June selloff as well, before recovering. However, STRC continues to trade below par at around $87.

As a practical matter, the divergence between SATA’s relative recovery and STRC’s remaining discount may shape near-term investor expectations for how quickly these instruments can reprice after market-wide pressure. It also highlights an important asymmetry: even when products share similar structural goals, their outcomes can differ based on investor sentiment, capital market conditions, and the companies’ execution over time.

Bitcoin treasury scale and the preferred-share thesis

Preferred-share strategies are ultimately tied to the broader credibility of the treasury-building plan. In that context, the article points to BitcoinTreasuries.NET for rankings of public Bitcoin treasury companies.

Strategy remains the largest public corporate Bitcoin holder, with 843,775 BTC, according to BitcoinTreasuries.NET. Strive, meanwhile, has risen to seventh place with 19,921 BTC. While Strive is smaller than Strategy by BTC holdings, the company’s positioning indicates it is still participating meaningfully in the treasury race.

This ranking dynamic matters for preferred shareholders because treasury scale can influence expectations about dividend sustainability and overall business resilience—especially in a market where equity instruments are often priced around confidence in both operations and long-term balance-sheet strength.

Samson Mow: preferred-share confidence is “restoring”

Samson Mow, founder and CEO of Jan3, told Cointelegraph that recent adjustments by Bitcoin treasury companies are beginning to restore confidence in preferred-share products and support his broader view that Bitcoin has already found its bottom.

In the same conversation, Mow pointed to actions by Strategy that encourage STRC to return to par. He said that SATA’s return toward par could reinforce market confidence in the overall model, adding that the products are capitalized for multiple years of dividend payments and that there was “no reason to panic” during the selloff.

Mow also connected the improved trajectory of preferred-share instruments to ongoing refinement across the Bitcoin treasury sector. In his view, newer entrants and alternative structures can further validate the approach—citing Lyn Alden’s Orange Juice treasury company, which launched on July 15 with plans to operate a Bitcoin treasury and an intention to use a different approach, including a lower Bitcoin cost basis.

What to watch from an investor’s perspective is whether these dynamics translate into sustained repricing toward par across the peer set. SATA’s movement back toward $100 is a signal, but the market will likely continue to judge each issuer based on how quickly its preferred instrument stabilizes and how resilient its dividend profile appears under changing conditions.

For traders and long-term investors, the next checkpoint is whether SATA’s recovery holds as other preferred-share offerings—particularly Strategy’s STRC—continue to find their footing. The broader unanswered question is how durable “near-par” performance remains across full market cycles, especially if Bitcoin volatility increases and treasury companies face new capital and balance-sheet decisions.

Robinhood Chain token launch platform Memecoin.Fun has raised $3.5 million in strategic funding as the network’s decentralized exchanges approach $9 billion in cumulative trading volume.

According to an official announcement from Memecoin.Fun, Becker Ventures led the financing, while BitValue Capital, Mason Labs, Negentropy Capital, and angel investor Billy Wen also participated. The platform completed the transaction through the USDG token, although the announcement did not disclose Memecoin.Fun’s valuation or the terms received by investors.

Strive’s SATA preferred shares have recovered nearly 16% from their June low to about $97, prompting Jan3 CEO Samson Mow to predict that the rebound could help Strategy’s STRC return to its $100 par value.

Yahoo Finance data show SATA has climbed from $83.30 and now trades within roughly 3% of the level it was designed to track. The recovery has erased most of the preferred stock’s late-June decline, while STRC remains about 13% below par despite receiving increased demand from major U.S. exchange-traded funds.

According to Mow, steps taken by Bitcoin treasury companies to improve their balance sheets and support their preferred shares have started rebuilding confidence in the products. He told Cointelegraph that SATA’s return toward $100 could reassure investors that the funding structure used by Strive and Strategy remains functional.

“I think every action that Strategy has undertaken to strengthen their balance sheet and encourage STRC to go back to par is also working.”

Mow expects the two securities to move together because investors are assessing whether Bitcoin-linked preferred shares can continue funding their dividends and hold close to their stated values.

“But everything sort of works in tandem. I think as SATA returns to par, you’re going to see STRC return to par too, because people say, ‘OK, this model’s not broken.’ Everyone is capitalized for three or more years of dividend payments… there was no reason to panic all along,” he added.

SATA’s recovery supports confidence in Bitcoin preferred shares

Strive introduced SATA in November 2025 to raise money for expanding its Bitcoin holdings without issuing more common stock. The variable-rate perpetual preferred shares use dividend adjustments to encourage trading around their $100 par value.

By changing the payout rate when needed, Strive can make SATA more or less attractive to investors as its market price moves. The company designed the structure to provide recurring access to capital while limiting dilution for common shareholders, according to its stated treasury strategy.

Strategy launched STRC in 2025 under a similar model. The preferred stock also uses a variable dividend to keep its price near $100, placing it in a category that Strategy calls “digital credit.”

During the late-June selloff, both products dropped well below their intended levels. SATA has since recovered to around $97, but Yahoo Finance data show STRC closed at $86.89 on July 24 after gaining 2.29% during the session. It later rose to $87.14 in after-hours trading.

Mow views the difference between their recoveries as temporary rather than evidence that STRC’s structure has failed. His forecast rests on investors treating SATA’s rebound as proof that preferred shares backed by Bitcoin treasury companies can recover after a sharp decline.

Alongside the price recovery, Mow pointed to companies refining how they raise capital and manage their Bitcoin holdings. He cited Lyn Alden’s Orange Juice treasury company, launched on July 15, as an example of a new entrant using a different operating model and starting with a lower Bitcoin acquisition cost.

BitcoinTreasuries ranks Strategy as the largest corporate Bitcoin holder, with 843,775 BTC. Strive holds 19,921 BTC, placing it seventh among public companies tracked by the platform.

Those holdings create different levels of Bitcoin exposure, but both companies rely on capital-market products to support their treasury plans. For Strive, SATA offers a route to fresh funds without selling more common shares, while Strategy uses STRC and other securities to finance additional Bitcoin purchases.

ETF demand strengthens STRC despite its discount

Institutional demand has already placed STRC at the top of three large U.S. preferred stock ETFs, even though the security continues to trade well below par.

Michael Saylor, Strategy’s co-founder and executive chairman, disclosed on July 24 that STRC is now the largest holding in BlackRock’s iShares Preferred and Income Securities ETF, Virtus InfraCap’s U.S. Preferred Stock ETF and VanEck’s Preferred Securities ex Financials ETF.

According to figures shared by Saylor, the three funds collectively hold $756 million of STRC. Their portfolios also contain preferred shares issued by established U.S. companies, giving ETF investors indirect exposure to Strategy’s Bitcoin-linked security alongside traditional income products.

In his X post, Saylor presented the ETF positions as evidence that Strategy’s “digital credit” securities are entering institutional portfolios. The holdings show that asset managers have allocated substantial capital to STRC, although its July 24 closing price remained 13.11% below $100.

STRC’s discount matters to Strategy because the company sells the preferred shares to fund Bitcoin purchases. Strategy can issue stock near or above par and direct the proceeds into Bitcoin, but a large discount reduces the amount of capital it can raise from each newly issued share.

Selling more STRC while it trades around $87 would therefore produce less funding per share than an issuance completed near $100. The lower price could weaken the economics of using the security for Bitcoin accumulation, even if existing ETF demand continues.

Mow’s outlook links SATA’s recovery with a possible improvement in those conditions. If investors interpret Strive’s return toward par as evidence that variable-rate Bitcoin preferred shares can stabilize, his view suggests STRC could attract enough demand to narrow its discount and restore a more efficient funding channel for Strategy.