Strategy's STRC Hits Record Low as Bitcoin Slips Below
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- STRC fell to a record low of $71.25 at Friday's open before firming to $75.30, marking a nearly 25% decline from its engineered $100 par value according to Yahoo Finance data
- Bitcoin hovered around $60,130 after hitting a 21-month low of $58,188 on Thursday, with $10.6 billion in options positions set to settle on Deribit
- Michael Saylor acknowledged on X that "volatility tests every capital structure" while emphasizing Strategy's focus on disciplined capital allocation and long-term value creation
- Strategy's 847,363 BTC stockpile is worth approximately $51 billion at recent prices, leaving the company roughly $13.1 billion underwater
- CryptoQuant reported the company's cash cushion has worn thin since January, when it held $2.25 billion to manage dividends and debt, warning further BTC sales beyond the 32 Bitcoin liquidated earlier this month could crystalize losses
- Nic Carter of Castle Island Ventures argued STRC's yield must be hiked to a 15-20% range to stabilize, well above its current 11.5% annual dividend — investors are effectively demanding over 15% returns at current prices
- Andy Baehr of GSR said STRC buyers "did not sign up for a 25% drawdown" and suspect Saylor "has painted himself into a corner," likening the product to a bank account now under stress
Why it matters: STRC's 25% slide below $100 par means investors are now demanding over 15% returns to hold the product — well above its 11.5% stated dividend. With Strategy's cash cushion down from $2.25 billion since January and $13.1 billion in unrealized BTC losses, Saylor faces a binary choice: hike the dividend to stabilize the preferred or watch it trade deeper underwater, per the source.
