--- title: "STRK at $400 will Dominate Strategy's Trading Volume" author: "Dan Hillery" author_url: "https://tnorth.com/crew/dan-hillery/" publisher: "True North" publisher_url: "https://tnorth.com" canonical_url: "https://tnorth.com/research/strk-400-dominate-strategy-trading-volume/" markdown_url: "https://tnorth.com/research/strk-400-dominate-strategy-trading-volume.md" date_published: "2026-05-01" date_updated: "2026-05-01" rendered_at: "2026-05-13T16:45:10.877Z" section: "research" tickers: ["MSTR", "STRK"] instruments: ["MSTR", "STRK"] asset_class: "perpetual-preferred-equity-bitcoin-backed" word_count: 555 reading_time_minutes: 3 license: "© 2026 True North. Cite with attribution and a link to the canonical URL. Not investment advice." disclosure: "True North is operated by Strive, Inc. Independent contributor content published under https://tnorth.com/legal/independent-discussion/." tldr_generated: true --- # STRK at $400 will Dominate Strategy's Trading Volume > **TL;DR.** Dan Hillery argues STRK will become as liquid as MSTR as a percentage of market cap. Gamma trading, MSTR call selling against STRK's embedded equity, levered carry trade structures, the ATM cut from $21B to $2.1B, and the moving liquidation preference all point to STRK dominating Strategy's trading volume. > — Dan Hillery, True North (https://tnorth.com/research/strk-400-dominate-strategy-trading-volume/) [STRK](/digital-credit/markets/strk/) will be the favored trading instrument in the family of [Strategy](https://www.strategy.com/) products, and it will become as liquid as MSTR as a percentage of market cap. ![STRK Valuation Surface — OAS × MSTR × Power-Law-Projected Path showing STRK pricing as a function of MSTR price and option-adjusted spread](/images/articles/strk-400-dominate-strategy-trading-volume/strk-prices-options-spread.jpg "STRK Prices based on options spread and MSTR price") --- ## Gamma Trading Convertible bond buyers monetize MSTR converts by shorting MSTR while holding the bonds. As the gamma of these instruments changes, these traders make money by profitably closing out shorts when MSTR falls in price. This same method can be employed with STRK. As MSTR approaches $1,000 per share, STRK's delta approaches 50-delta, at which point traders can hold STRK and short MSTR, profiting from this exact trade. --- ## Call Selling Selling calls against the equity portion of STRK, using MSTR calls, is a great way to extract value from the embedded MSTR option within STRK. Much like traditional MSTR option selling, you face assignment risk. In practice, selling these options is always messier than expected. Nevertheless, you can pull significant premium out of the options market to boost STRK's already strong yield. As MSTR's price appreciates and STRK's delta increases, extracting MSTR's embedded volatility from STRK through call selling will become increasingly profitable. --- ## Levered BTC Equivalent / Carry Trade Exposure (Determined Downside) STRK's embedded equity exposure sits around 22%. As MSTR increases in price, that embedded equity exposure will continue to increase. If you wanted to lever STRK 2:1 at a 5% cost of borrow, you would get 45% effective MSTR exposure, or roughly 60% BTC exposure plus a 15% annualized yield, all with downside protection through the bond floor if Bitcoin and MSTR were to fall further. This type of exposure plus yield is very difficult to beat among Bitcoin structured products. The result should be increasing interest in STRK over time. For now, volatility is what is scaring everyone. ![Strategy reported STRK metrics dashboard showing STRK price, market cap, fixed dividend, effective yield, MSTR and BTC correlations, and equity component](/images/articles/strk-400-dominate-strategy-trading-volume/strategy-reported-strk-metrics.png "Strategy reported STRK metrics") --- ## Limited Issuance Strategy reduced the ATM shelf registration on STRK on March 23, 2026, from $21B to $2.1B, indicating that there will be limited issuance moving forward. When the ATM is limited, the market is able to price the credit spread of the instrument, and that spread will not be artificially compressed. The market will start aggressively finding an equilibrium price for STRK, resulting in higher sustained volumes. This will help the market arrive at a proper credit spread and allow large participants to gamma trade, as explained above. --- ## STRK is Superior to MSTR at Very High MSTR Prices — **Moving Liquidation Preference** On July 7, 2025, Strategy amended STRK from a static liquidation preference to a moving liquidation preference. This decision materially improved the investor protections associated with STRK. Taken to the extreme, STRK will trade like MSTR with a perpetual cash dividend and a claim over Strategy's assets that is superior to MSTR. Once, not if, MSTR goes well beyond $1,000 per share, STRK will arguably be a stronger alternative to holding MSTR. Volume and open interest will increase significantly. Do not let the lack of short-term liquidity scare you when there is significant volume on the horizon. ## About this document Canonical HTML: https://tnorth.com/research/strk-400-dominate-strategy-trading-volume/ Site-wide AI index: https://tnorth.com/llms.txt