Strategy's STRC Hits Record Low Under $72 as Michael Saylor Defends Capital Structure
Strategy's $STRC perpetual preferred stock fell to a record low under $72 on Wednesday, marking a 15% decline over the past five trading sessions. The selloff unfolded hours after company founder Michael Saylor addressed the volatility on X, stating that "volatility tests every capital structure" and emphasizing the firm's continued focus on Bitcoin and disciplined capital allocation.
At the recent price levels, the deep discount translates to an effective yield of roughly 15.3%, according to Arkham Analytics, as investors demand a higher return to justify holding the preferred equity. STRC carries a $100 par value and requires $1.2 billion in annual dividend payments, straining a balance sheet that also saw common stock $MSTR close at a two-year low of $85.33 on Thursday. The valuation decline reflects both a collapse in MicroStrategy's premium to its Bitcoin treasury and mounting investor scrutiny over the sustainability of its dividend obligations following the launch of a securities probe by the Rosen Law Firm earlier this week.
From the sources (25 posts)
@laurashin1/ Strategy's STRC Bitcoin-backed preferred stock can't seem to find its way back to its par value of $100. A Bitcoin rebound surprisingly did not help. Strategy's move to bi-monthly dividend payment cycle has not helped and neither has th
@laurashinI sat down with @ColeMacro of @Strive after he called last week the most difficult in digital credit's history. 📉 He argues the STRC drop was a leverage liquidation, not a broken model. I pushed him on whether the critics of Strategy are
@saylorRT @ColeMacro: I was on @BloombergTV today discussing the problem Digital Credit is built to solve. Even with recent volatility, $SATA is…
@saylorDigital Credit is income for investors who believe in Bitcoin. $STRC
@bulltheoryioBREAKING: Michael Saylor's $MSTR hit $103 yesterday, a new 23 month low. It is now down -81% from its all time high and has wiped out $153 billion from its market cap. Strategy holds 847,363 Bitcoin worth $53 billion at current prices. Th
@deitaoneBITCOIN DROP COULD PRESSURE STRATEGY Strategy’s $53 billion Bitcoin holdings currently cover its financing costs, but a deeper Bitcoin decline could make funding more difficult. Analysts estimate that if Bitcoin falls to $30,000, Strategy
@laurashinRT @laurashin: 1/ Strategy's STRC Bitcoin-backed preferred stock can't seem to find its way back to its par value of $100. A Bitcoin rebou…
@degeneratenewsBREAKING: $MSTR (@Strategy) DROPS BELOW $100
@bulltheoryioBREAKING: $STRC just crashed to $84. Despite constant dilution of $MSTR shareholders, STRC isn't going anywhere near its $100 peak and just keeps sliding lower. This means one of two things. 1. Either the market expects Saylor to sell a
@wublockchainStrategy Shares Fall Below $100 for First Time Since March 2024 According to market data, Strategy (MSTR) fell below $100 and was trading at $99.50, down 4.18% intraday, marking its first drop below $100 since March 2024. Strategy is curre
@thelonginvest$MSTR is now below $100
@bulltheoryioBREAKING: $STRC just crashed to $84. Despite constant dilution of $MSTR shareholders, STRC isn't going anywhere near its $100 peak and just keeps sliding lower. This means one of two things. 1. Either the market expects Saylor to sell a
@theblockcoTHE BLOCK: Strategy’s $MSTR stock has fallen below $100 for the first time since March 2024.
@tftc21Strategy ($MSTR) just fell below $100 for the first time since March 2024. Down more than 80% from its November 2024 peak of ~$474. The company holds 847,363 BTC at an average cost of ~$75,646 per coin. With bitcoin at ~$62,000, that's an
@scottmelkerJUST NOW: $MSTR DROPS BELOW $100
@deitaone$MSTR - STRATEGY FACES GROWING BITCOIN PRESSURE Falling Bitcoin prices are increasing pressure on Strategy’s finances, with its cash reserves shrinking while dividend obligations continue to rise. Analysts warn the company may face tough
@fintechfrankRT @slatersanter: MSTR is trading below $100 for the first time since 2024.
@cryptoroverBREAKING: 🚨 SAYLOR'S STRATEGY IS UNDER INVESTIGATION. Rosen Law Firm has opened a probe into potential securities claims. The allegation: the company may have issued materially misleading info to investors.
@laurashinRT @JacobKinge: JUST IN: Rosen Law Firm has announced a massive investigation into Michael Saylor’s Strategy concerning securities law viol…
@degeneratenewsNEW: PRIMARILY $STRC-BACKED SYNTHETIC STABLECOIN $apxUSD DEPEGS AS MUCH AS 36% - NOW TRADING JUST BELOW $0.8 @apyx_fi website says "Apyx is the first dividend-backed dollar protocol that transforms preferred equity issued by Digital Asset
@nic_carter<not investment advice> think from the perspective of a junk bond investor. what required rate of return would you require to hold the riskiest part (STRC) of the teetering edifice that is MSTR? subordinated under other real debt? with si
@thedefiedgeThe most aggressive Bitcoin buyer in the world is running low on cash. Strategy owns around 847k $BTC, worth roughly $52B or about 4% of all Bitcoin that will ever exist. So when @cryptoquant_com says they should pause purchases, that's n
@cryptorover🚨 THE CRASH IS NOT STOPPING AND MICHAEL SAYLOR IS NOW IN REAL TROUBLE. Bitcoin just crashed nearly -5% in 30 minutes. $STRC collapsed to a new all-time low. $MSTR is already down over -83% from its peaK. The market is starting to fear
@arkhamWill this kill Strategy? No. But it may hurt them in the long run. To keep STRC afloat, Saylor needs to keep paying $1.2 Billion per year in dividends. If MSTR investors realize their money is just being used to pay back earlier sharehold
@arkhamSo why is STRC down now? Investors may have sold STRC because they believe Saylor is unlikely to pay future dividends, will have trouble raising capital in the future, or potentially to chase returns in other stocks.