#STRCHitsAllTimeLow

📉 STRC stock is now at $74. Mstr stock is below $90. This is a test for Strategys Bitcoin model and the numbers are not looking good.

The details of whats happening with Strategy are important. People are not seeing the full picture.

STRC stock hit a record low of $74 on Thursday, which's 26% below its usual value of $100. MSTR stock also fell below $90 for the time in 16 months.

* Bitcoins price drop to below $60,000 has put Strategys Bitcoin holdings at a loss of about $10.6 billion.

* The companys cash reserves will only last about 14 months of dividend payments at rates.

This 14-month timeline is the important thing to watch. It seems okay until you think about what happens if Bitcoin doesn't go back up soon.

Strategy has to pay about $1.2 billion in dividends each year.

The company can't easily raise money by selling new shares because STRC is trading at a low price.

If they sell Bitcoin to pay dividends it hurts their idea.

The good news for Strategy is that they have about 850,000 Bitcoins, which's worth about $51 billion at $60,000 each.

They have about $8 billion in debt.

A Strategy executive said their Bitcoin reserves are strong and will hold up even if the market is bad.

The next important date is June 30 when the dividend rate for STRC will be reset.

If Strategy raises the dividend rate it could help stabilize the stock.

There's also a bad case. If Bitcoin keeps falling Strategy might have to sell Bitcoin to pay dividends.

This could make the price of Bitcoin fall more which would be bad for Strategy.

* June 30 is a date to watch.

* See how the market reacts to the dividend rate reset.

With STRC, at $74 and a 15.5% yield and Strategy holding 850,000 Bitcoins with 14 months of cash. Is this a chance to buy or a warning that the Bitcoin model won't work?

‍#STRCHitsAllTimeLow #GateSquare #Bitcoin?