STRC drops to $83. Its initial public offering price was $90. Par value is $100. The current trading price is between $85 and $88.

This is not just a change in the preferred stock price. It’s a signal that the mechanism the crypto market should structurally follow is collapsing.
Let’s first explain what happened.
STRC is a variable-rate perpetual preferred stock launched by Strategy in July 2025. The IPO size was $2.52 billion, making it the largest IPO of 2025 so far. The company’s design is as follows: sell STRC, raise funds, buy Bitcoin, Bitcoin appreciates, pay dividends, issue new STRC, and repeat the cycle.
But now, this cycle has stopped.
Why?
First, the mechanism itself. When STRC falls below $100, the company is obligated to increase the dividend rate. Below $95, it is mandatorily increased by 0.5%. This means an additional annual obligation of $53 million. Currently, the actual yield has reached 13.5%. As dividends increase, cash burden also rises. The increased cash burden adds pressure to sell Bitcoin.
This is a self-reinforcing cycle. The market also sees this.
Second, depletion of cash reserves. In December 2025, USD reserves were $2.25 billion. Now, it’s about $900 million. A 60% reduction in five months. The annual preferred stock dividend obligation is between $750 million and $800 million. Therefore, the existing reserves can cover about a year’s worth of dividends.
Third, the breakout on June 1. Strategy broke its four-year “never sell” commitment in early June. It sold 32 Bitcoin to pay dividends, amounting to $2.5 million. The number is small, but the message is significant. On the same day, the market experienced $396 million in ETF outflows and $1.63 billion in leverage liquidations.
Now I’ll ask a core question. Will Saylor sell Bitcoin again?
To honestly answer this, we need to consider three scenarios.
Scenario 1: Saylor does not sell but increases dividends. By June 30, dividends could be raised to 11.75% or 12%. This would attract buyers to purchase STRC, possibly pushing the price above $90. In this case, there is no selling pressure on Bitcoin, but the annual obligation increases.
Scenario 2: Saylor sells a small amount of Bitcoin, depresses the market, then buys back at a lower price. Theoretically, this would increase the Bitcoin per share. But to achieve this, BTC needs to actually become lower after the sale and then be bought back. It’s a delicate operation. Every Bitcoin sale impacts the market and confidence in STRC.
Scenario 3: Selling MSTR stock. This week, the company sold $209 million worth of MSTR stock, acquiring 1,587 Bitcoin. This is another financing route when STRC channels are blocked. But MSTR stock also declines in sync with BTC, down 9% so far this year. Saylor issued a statement during the Juneteenth holiday, saying reserves could cover 32 years of dividends. Mathematically, that’s correct. 846,842 Bitcoin, roughly $54 billion at today’s prices. The annual obligation of $800 million suggests it could last 67 years. But trust is what the market values, not just math.
And trust remains fragile.
Jesse Myers said not to confuse this with Terra. He’s right. STRC is not an algorithmic stablecoin. It’s backed by 846,842 real Bitcoin. This is not a scenario of structural collapse.
But the “house of cards” structure Peter Schiff refers to also faces real pressure. If STRC fails, other channels will be needed to buy new Bitcoin. Alternative channels are costly. And as long as BTC stays between $62,000 and $65,000, this pressure will persist.
My understanding of this situation is as follows:
In the short term, the dividend decision on June 30 is crucial. If the company raises the rate, it signals confidence in STRC. If not, the market will interpret it as weakness. Keeping Bitcoin’s price above $65,000 is the cleanest way to break this cycle. If Bitcoin rises, STRC will naturally recover, and new issuance channels will reopen.
In the long run, this story demonstrates Bitcoin’s deep integration into institutional finance. This integration is both an advantage and a risk. Strategy has consciously taken on this risk and is now experiencing it.
I hold a small position in STRC. When below $85, the effective yield is 13.5%. When Bitcoin rebounds to $70,000, STRC returning to $100 implies a 17% capital appreciation plus monthly dividends.
This is an asymmetric situation. But asymmetry does not always mean low risk.
My plan is set. My position is within my risk tolerance.
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This content is for reference only and does not constitute financial advice.