STRC falling below face value timeline review: From bond repurchase to chain reaction of BTC decline

robot
Abstract generation in progress

Deep Tide TechFlow News: On June 20, according to CoinDesk, the dividend-paying preferred stock STRC issued by Bitcoin treasury company Strategy recently fell below its $100 par value, triggering market discussions about its capital structure and ability to repay obligations. The key timeline is as follows:

May 14: STRC closed at $100 on the day before the ex-dividend date, with Bitcoin still above $80,000, but market pressure had already emerged. In the same period, Strive Asset Management announced that its competing product SATA would adopt a daily dividend mechanism, raising the yield to 13%, further intensifying STRC’s competitive pressure.

May 15: Strategy announced a buyback of $1.5 billion worth of 2029 convertible bonds at an approximately 8% discount. The market later noted that the company’s USD cash reserves used for dividends and debt support had been allocated to this transaction.

May 26: Strategy confirmed that cash reserves took part in the bond repurchase, reducing the funds to about $871 million—equivalent to covering only about 6 months of STRC dividend payments, whereas the company’s prior target was to maintain coverage of about 24 months.

June 1: Strategy sold Bitcoin for the first time since 2022, selling 32 BTC to demonstrate that it can support dividend payments through asset sales. After the news was released, MSTR’s stock price fell by 5.9%.

June 5: Bitcoin fell below $60,000, and STRC dropped to around $90.

June 8: Strategy shareholders approved changing STRC to pay dividends twice a month, and the company disclosed that its USD reserves had rebounded to $1 billion.

June 15: Strategy repurchased 1,587 BTC, bringing USD reserves up to $1.1 billion.

June 18: STRC fell below $83 during intraday trading, about 17% below its target price. This marked a new low since it listed in July 2025, and it ultimately closed at $88.59.

Analysts believe the core challenge STRC faces is that its high-yield preferred stock structure is highly tied to the Bitcoin cycle. In a Bitcoin bear market environment, investors are not only reassessing BTC itself, but also beginning to reexamine the financial products and capital framework built around Bitcoin.

BTC1.37%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned