Strategy seeks shareholder approval for daily preferred stock dividends — SkimNews
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- STRC, Strategy's preferred security designed to generate income from its Bitcoin treasury, fell sharply below its $100 stated amount in June, hitting an intraday low of $71.25 on June 26 per Yahoo Finance data.
- Strategy CEO Phong Le, speaking on Natalie Brunell's Coin Stories podcast, attributed the decline to more leverage entering the market than the company anticipated, with some investors borrowing against Bitcoin at lower rates to capture the spread with STRC's dividend yield.
- Le explained that when Bitcoin's price fell, leveraged holders faced pressure to add collateral or sell STRC, calling the episode a "lesson learned" and noting: "We did not expect the amount of leverage that came into the system."
- Strategy is responding by maintaining a strong US dollar reserve and implementing a policy to repurchase STRC when it trades below its $100 stated amount, while targeting institutional long-term holders.
- STRC has since recovered to roughly $98.41, near the company's stated $99–$100 target range, and currently carries a 12% variable annual dividend rate.
Why it matters: The June plunge — nearly 29% below STRC's stated $100 value — exposed structural fragility in Strategy's "digital credit" model, where retail leverage rather than fundamental credit risk drove the unwind. The new $100 buyback policy and dollar reserve shift the burden of price stability onto Strategy's balance sheet, effectively converting a Bitcoin-treasury income product into a company-backed quasi-money-market instrument.
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