Strategy’s STRC Preferred Falls to Record Low $84.46 as Concerns Grow Over Bitcoin Sales to Fund Dividends
Strategy’s bitcoin-backed preferred stock, STRC, fell to a record low of $84.46 on June 18, down from about $89 a day earlier and extending its slide below the $100 level despite the company’s claim that its Bitcoin reserve can cover 32 years of dividend payments.
The decline adds to concern that Strategy may need to sell more Bitcoin to fund dividend payments. Michael Saylor said the company needs the ability to sell Bitcoin to support its digital credit business, defending Strategy’s first reported BTC sale since 2022, while QCP Capital said those worries were preventing Bitcoin from fully participating in broader macro optimism.
From the sources (19 posts)
@coinmarketcapLATEST: 📊 Strategy’s STRC fell to $91.79, 8.2% below its $100 par value, after recent BTC purchases raised investor concern, according to 10x Research.
@theblockcoRT @perry8888_: $STRC on track for its lowest close at sub $90 If price is below $95 for the last 5 days of June, management recommends a…
@trustlessstate@R89Capital I kinda don’t understand the strategy. If he raises the yields, he runs out of capital even faster = less confidence in STRC, but more incentive If he lowers the yields, confidence increases but incentive lowers. Doesn’t f
@saylorRT @Strategy: We have 32 years of dividend coverage through our $BTC Reserve.
@rektmandoSTRC closed at $88.88
@tyler_did_itSTRC at $89 and finding new lows 🥶
@udiwertheimer@Strategy bullshit your btc reserve is not worth $55B. It is not worth 32 years of dividend coverage. you simply cannot liquidiate your btc reserve for $55B. if you ever try to liquidate it you’d be lucky to squeeze $10B imo, but certainly
@udiwertheimer@Strategy it’s like, enough with this crap man you made a bad trade it happens the entire market is waiting for you to capitulate the longer you wait the worse it’s going to be
@cointelegraph🚨 LATEST: Strategy says its Bitcoin reserve provides enough coverage to support dividend payments for the next 32 years.
@udiwertheimerthe real problem: last time saylor tweeted something retarded like this, he had “60 years” of dividend coverage he lost 28 years in 5 months very reassuring
@udiwertheimer@Strategy brother in november you had 71 years of dividend coverage now you have 32 years how did you lose 39 years in 7 months?
@udiwertheimerRT @udiWertheimer: @Strategy brother in november you had 71 years of dividend coverage now you have 32 years how did you lose 39 years in…
@cointelegraph🔥 UPDATE: Strategy’s 32-year dividend coverage claim could shrink if it needs to sell Bitcoin to fund payouts, according to crypto analyst @JA_Maartun.
@udiwertheimer@thedefivillain yeah i mean i was wrong about the result but not about the reasoning. saylor’s situation is reflexive and affects the entire market. when he was able to raise infinite capital it was bullish and when he lost that ability it
@udiwertheimer@ZynxBTC refusing to increase the dividends, while simultaneously adding substantial risk by spending 65% of the cash reserves on buying back converts, and all that after doubling the STRC float in a few short months, was, in retrospect, no
@coinmarketcapLATEST: ⚡️ QCP Capital says concerns that Strategy may need to sell more Bitcoin to fund dividend payments are preventing BTC from "fully participating in the broader macro optimism."
@degeneratenewsNEW: @Strategy’S $STRC DROPS TO $86.25
@theblockcoTHE BLOCK: Strategy's STRC stock preferred falls to a record-low $84.46, down from $89 a day earlier and still sliding below its $100 level.
@theblockcoRT @TheBlockCo: THE BLOCK: Strategy's STRC stock preferred falls to a record-low $84.46, down from $89 a day earlier and still sliding belo…