Here’s a tighter, more punchy rewrite with a slightly more analytical tone:
A series of bond buybacks, shrinking liquidity buffers, and a weakening bitcoin market combined to knock STRC off its $100 par target—sparking wider concerns among investors.
STRC, the dividend-paying preferred equity issued by bitcoin treasury firm Strategy (MSTR), is designed to trade at par. In practice, however, that stability has proven difficult to maintain.
On Thursday, the stock fell below $83—around 17% under par and its lowest level since its July 2025 debut. The instrument was intended to offer high yield with relatively low volatility.
Staying near $100 is crucial for Strategy, as it allows the company to raise capital efficiently through at-the-market (ATM) offerings that fund its 11.5% annual dividend.
But a mix of falling bitcoin prices and key corporate decisions has pushed STRC well below that level. Here’s how the slide unfolded:
May 14: STRC closed at $100 ahead of its ex-dividend date, while bitcoin traded above $80,000. Beneath the surface, however, bitcoin had already fallen sharply from its $126,000 peak, and STRC had only briefly held par. At the same time, Strive Asset Management raised competitive pressure by offering a 13% yield and daily payouts on its rival product, SATA.
May 15: Strategy announced a $1.5 billion buyback of its 2029 convertible notes at an 8% discount. The move was partly funded by a cash reserve originally intended to support dividends and debt obligations, though this wasn’t disclosed at the time. Bitcoin slipped to $78,000.
May 18: The company purchased 24,869 BTC as bitcoin continued its decline toward $76,000.
May 26: Strategy confirmed it had used its cash reserve for the buyback, reducing the fund to $871 million—enough for roughly six months of dividend coverage, down from a previous 24-month target. STRC hovered just below par as bitcoin traded near $77,000.
June 1: Strategy sold 32 BTC—its first sale since 2022—signaling flexibility in meeting obligations. Despite the small size, the move unsettled markets: MSTR shares dropped nearly 6%, and bitcoin slid to around $71,000. STRC closed at $98.07.
June 5: Bitcoin broke below $60,000 for the first time since October 2024, ending near $61,000. STRC dropped sharply, briefly touching $90 before closing at $93.40.
June 8: Shareholders approved a shift to semi-monthly dividend payments. Strategy also bought 1,550 BTC and reported its reserve had recovered to $1 billion.
June 15: Another purchase of 1,587 BTC lifted the reserve to $1.1 billion.
June 18: STRC briefly dipped below $83 before closing at $88.59 ahead of a holiday-shortened week. Bitcoin fell again to around $62,880. Market participants pointed to leverage-driven liquidations rather than weakening fundamentals as the main driver.
Strategy now holds 846,842 BTC at an average cost of $75,656, leaving it with an unrealized loss of roughly $11 billion at current prices.
Meanwhile, recent capital raises have drawn criticism for being dilutive, with MSTR shares down about 80% from their November 2024 peak.
All of this has played out during a bitcoin bear market, amplifying pressure on both the asset and the financial structures tied to it.
The key question now is whether STRC can stabilize and reclaim its $100 par value.
