TechFlow News, June 25: Jiang Zhuo’er stated that MicroStrategy’s preferred stock STRC is trading significantly below its par value, reflecting declining U.S. equity market investors’ risk appetite for Bitcoin. He noted that although MicroStrategy can still raise capital through issuing common shares, doing so when the price-to-book ratio falls below 1 would dilute its per-share Bitcoin holdings—a costly option.
Recently, the company has carried out consecutive financing activities over several weeks, and its Bitcoin purchases notably slowed during the latest week—suggesting more funds may be allocated toward paying STRC dividends, signaling a cautious stance on future market conditions. However, he also pointed out that STRC is preferred stock, not a debt instrument; given MicroStrategy’s currently low leverage ratio, the likelihood of significant credit risk in the near term remains limited.
