STRC breaks below $83: How did Strategy's preferred stock not hold up?
Designed to hover around $100, STRC has now dropped to $83 — nearly 20% below par.
It's not just one reason causing this:
• BTC plummeted from $126K to $63K, leaving Strategy with a paper loss of 11.1 billion
• Buying back convertible bonds at a discount using cash reserves, shrinking the buffer from 24 months to 6 months
• Sold BTC for the first time on 6/1 (32 coins), catching the market off guard
• Competitor Strive switched SATA to daily payouts, offering an even higher yield (13%)
MSTR common stock has also dropped over 80% from its peak.
Strive's CEO claims this is a leverage liquidation cycle, not a fundamental credit issue. But the question is — if BTC continues to grind lower, can this cycle even stop?
#MicroStrategy #Strategy
Designed to hover around $100, STRC has now dropped to $83 — nearly 20% below par.
It's not just one reason causing this:
• BTC plummeted from $126K to $63K, leaving Strategy with a paper loss of 11.1 billion
• Buying back convertible bonds at a discount using cash reserves, shrinking the buffer from 24 months to 6 months
• Sold BTC for the first time on 6/1 (32 coins), catching the market off guard
• Competitor Strive switched SATA to daily payouts, offering an even higher yield (13%)
MSTR common stock has also dropped over 80% from its peak.
Strive's CEO claims this is a leverage liquidation cycle, not a fundamental credit issue. But the question is — if BTC continues to grind lower, can this cycle even stop?
#MicroStrategy #Strategy