Benchmark: STRC bitcoin accumulation model ‘not circular’

Benchmark defended the STRC bitcoin accumulation model in a statement, calling the approach ‘not circular' and rejecting claims that its purchase process recycles prior holdings to fund new buys.

Critics had argued the strategy created a feedback loop in which increases in bitcoin value or investor flows allowed the portfolio itself to meet new purchase requirements, effectively amplifying market moves.

Benchmark described STRC as operating under predefined investment guidelines and funding arrangements that separate cash inflows used for purchases from the market value of bitcoin already held.

The firm said purchases are triggered by stated policy parameters and are financed by investor contributions and designated cash balances rather than by selling or monetizing existing bitcoin positions.

Oversight and reporting mechanisms are in place to ensure the model follows approved procedures. Benchmark pointed to independent custodians and administrators that handle bookkeeping and asset safekeeping and to documentation provided to investors about the strategy's rules and funding sources.

The company offered to provide updates and answer investor questions about the model's operations and safeguards.

Asset managers and investors have increased scrutiny of accumulation strategies as institutional interest in bitcoin has grown. Some investors use scheduled or rules-based purchases to build exposure over time, while others have raised concerns about potential liquidity effects from large, repeat purchase programs.

Accumulation models aim to add exposure incrementally through scheduled purchases or rules-based triggers. Debate about circularity centers on whether a strategy relies on the portfolio itself to meet future purchase obligations.

Benchmark maintained that STRC's mechanics and controls prevent internal recycling of holdings and that the model is consistent with its published investment mandate.