STRC Falls to Record Low, Slowing Strategy's Bitcoin
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- STRC fell to a record low of $82.53 on Thursday before closing at $88.59, trading 13% below its $100 par value and pushing its effective yield above 12.9%
- Strategy's Bitcoin accumulation has collapsed to a trickle — it added 1,550 BTC ($101M) for the week ending June 8 and 1,587 BTC ($100M) for the week ending June 15, compared with 34,164 BTC ($2.54B) in a single April week
- Strategy executed a small 32 BTC sale worth roughly $2.5M earlier in June to help cover STRC dividend obligations, marking a rare and tiny Bitcoin disposition
- Peter Schiff has repeatedly called STRC "a classic centralized Ponzi," arguing the instrument depends on Strategy's ability to raise fresh capital or sell Bitcoin to meet obligations
- DonAlt joined the criticism, publicly questioning why STRC was "trading like a Ponzi" after its sharp move below par
- Jesse Myers of The Smarter Web Company pushed back, saying "Strategy is fine" and projecting the company could pay STRC dividends for 32 years at current conditions, or indefinitely if Bitcoin appreciates at roughly 2% annually
- Strategy has paused at-the-market share issuance for STRC, moved to a semi-monthly dividend schedule, and is expected to announce its next dividend rate on June 30
Why it matters: STRC's discount to par is squeezing the capital-raising flywheel that funded Strategy's accumulation of 846,842 BTC: at-the-market share issuance is paused, and weekly Bitcoin purchases have plunged from $2.54B in April to roughly $100M in June. If the discount persists into the June 30 dividend decision, Strategy will need to lean harder on MSTR share issuance or cash reserves to maintain its "never-net-seller" posture.
