TechFlow News, June 20: According to CoinDesk, STRC—Strategy’s dividend-paying preferred stock—recently fell below its $100 par value, sparking market discussion regarding the company’s capital structure and solvency. Key timeline events are summarized below:
May 14: STRC closed at $100 on the ex-dividend date; Bitcoin’s price remained above $80,000, yet market stress was already evident. Concurrently, Strive Asset Management announced its competing product, SATA, would adopt a daily dividend mechanism, raising its yield to 13%, further intensifying competitive pressure on STRC.
May 15: Strategy announced it would repurchase $1.5 billion of its 2029 convertible bonds at an approximately 8% discount. The market subsequently noted that the company’s U.S. dollar cash reserves—intended for dividend payments and debt support—were deployed in this transaction.
May 26: Strategy confirmed its cash reserves were used for the bond repurchase, reducing its cash balance to approximately $871 million—enough to cover only about six months of STRC dividend payments, down from its prior target of roughly 24 months’ coverage.
June 1: For the first time since 2022, Strategy sold 32 BTC to demonstrate its ability to support dividend payments through asset sales. Following the announcement, MSTR’s stock price dropped 5.9%.
June 5: Bitcoin fell below $60,000, and STRC declined to around $90.
June 8: Strategy’s shareholders approved converting STRC to a semi-monthly dividend schedule, while the company disclosed its U.S. dollar reserves had rebounded to $1 billion.
June 15: Strategy purchased an additional 1,587 BTC, raising its U.S. dollar reserves to $1.1 billion.
June 18: STRC intraday traded below $83—approximately 17% below its target price—and hit a new low since its July 2025 listing, ultimately closing at $88.59.
Analysis suggests STRC’s core challenge lies in its high-yield preferred stock structure, which is tightly coupled with Bitcoin’s price cycle. In a Bitcoin bear market, investors are not only reassessing Bitcoin itself but also reevaluating financial products and capital structures built around Bitcoin.
