STRC Breaks Below Face Value: Timeline Review of a Chain Reaction from Bond Repurchases to BTC’s Decline

robot
Abstract generation in progress
Gold Financial reports that the dividend-paying preferred stock STRC issued by Bitcoin Treasury Company Strategy recently fell below its $100 face value, sparking market discussions about its capital structure and solvency, with key dates as follows:
May 14: STRC closed at $100 before the ex-dividend date, with Bitcoin prices still above $80k, but market pressure had already emerged. Meanwhile, Strive Asset Management announced that its competing product SATA would adopt a daily dividend mechanism, increasing yields to 13%, further intensifying STRC's competitive pressure.
May 15: Strategy announced a buyback of $1.5 billion of 2029 convertible bonds at approximately an 8% discount. The market then focused on the fact that the company's dollar cash reserves used for dividends and debt support were utilized for this transaction.
May 26: Strategy confirmed that cash reserves participated in bond repurchases, reducing funds to about $871 million, which only covers approximately six months of STRC dividends, whereas the company's previous goal was to maintain about 24 months of coverage.
June 1: Strategy sold Bitcoin for the first time since 2022, selling 32 BTC to demonstrate its ability to support dividend payments through asset sales. After the announcement, MSTR's stock price dropped 5.9%.
June 5: Bitcoin fell below $60k, and STRC dropped to around $90.
June 8: Strategy shareholders approved changing STRC to pay dividends twice a month, and the company disclosed that dollar reserves had rebounded to $1 billion.
June 15: Strategy repurchased 1,587 BTC, with dollar reserves rising to $1.1 billion.
June 18: STRC intraday fell below $83, about 17% below its target price, hitting a new low since its listing in July 2025, and finally closed at $88.59.
Analysts believe that the core challenge facing STRC lies in its high-yield preferred stock structure being highly tied to the Bitcoin cycle. In a Bitcoin bear market environment, investors are not only reassessing BTC itself but also re-evaluating the financial products and capital systems built around Bitcoin.
BTC-0.81%
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