strc

Grayscale Research Director Zach Pandl stated that Strategy disclosed the sale of 32 BTC on June 1. Although the amount is small, it has triggered a new round of volatility in the Bitcoin market.He pointed out that the variable rate preferred stock STRC is trading below the $100 target level, which may prompt the company to increase dividends and add pressure on future cash flows, potentially leading to more selling pressure on BTC. At the current price levels of STRC and MSTR, Strategy's ability to further increase its BTC holdings is limited.

Grayscale's research director Zach Pandl stated that after Strategy disclosed the sale of 32 BTC on June 1, it triggered a new round of volatility in the BTC market. He pointed out that the scale of the sale itself is not important, as Strategy still holds approximately 840,000 BTC on its balance sheet, valued at about $5.5 billion. However, as one of the largest digital asset treasury managers in the world, its strategic shift puts pressure on market sentiment.Pandl believes that more importantly, the recent volatility affects the price of Strategy's variable rate preferred stock tool STRC. STRC is designed to maintain a price of about $100 per share, with a current dividend yield of 11.5%. If the stock price falls below $100, it means investors are demanding a higher return. Strategy can increase dividends, but this will increase future cash flow obligations and may lead to more BTC sales, further suppressing BTC prices. Strategy's leveraged business model is under pressure, increasing volatility across the entire BTC market.At the current levels of STRC and MSTR stock prices, Grayscale believes that Strategy's ability to continue accumulating more BTC is limited. However, Grayscale believes that in the long term, reducing the BTC on the leveraged digital asset treasury balance sheet and allowing more BTC to be distributed across diversified corporate balance sheets will benefit the health of the Bitcoin ecosystem. But before a sustainable bottom for BTC prices is formed, other buyers need to enter the market. Grayscale expects BTC prices to recover in the coming months, but in the short term, BTC's performance may lag behind other segments of the crypto market that directly benefit from regulatory clarity.

The stablecoin apxUSD, issued by the Apyx protocol and primarily collateralized by Strategy preferred stock STRC, briefly depegged during the time Bitcoin fell below $63,000, dropping to a low of $0.93. Apyx stated that this fluctuation was not a vulnerability but rather an expected performance of the preferred stock collateralized stablecoin. Since the reserve assets of apxUSD are mainly composed of STRC preferred stock with a face value of $100, when STRC falls below its face value in the secondary market, the market value of the reserve assets will decrease, leading to price fluctuations in the stablecoin.The protocol claims that its stability mechanism includes over-collateralization, a dividend adjustment mechanism, and cash and short-term U.S. Treasury reserves as a buffer. Data shows that since last August, STRC has fallen below its face value four times, but has ultimately returned to $100 each time. In response to market concerns about a chain liquidation in the Morpho lending market, Apyx stated that its core apyUSD/apxUSD market primarily relies on the accumulation of dividend income rather than the spot price of STRC, so related fluctuations will not trigger large-scale liquidations.

Notable gold supporter and cryptocurrency critic Peter Schiff posted on X, stating: "Most STRC investors may ultimately lose most of their funds, as once Michael Saylor is forced to cancel the dividend distribution, the price of STRC will eventually crash.At that time, a large number of lawsuits are likely to further exacerbate the problems faced by Strategy (MSTR). Those investors who suffered losses due to misleading promotions are expected to seek compensation through legal means to recover their investment losses."

According to monitoring by Paidun, the stablecoin apxUSD, supported by preferred shares such as STRC, has fallen to about $0.94, a decrease of 4.6%. As Bitcoin drops to around $63,000, the decrease in collateral value has caused the stablecoin to depeg.

According to official news, Strategy proposed to change the dividend distribution frequency of STRC from monthly to bi-monthly. The company stated that if the amendment is approved and implemented, it may reduce reinvestment delays, enhance liquidity, market efficiency, and price stability.This amendment requires approval from both MSTR and STRC shareholders to pass. Strategy stated that shareholders can vote through their brokerage accounts or contact their proxy solicitation firm, Alliance Advisors, for related inquiries.

According to independent analyst Markus Thielen, Strategy recently made a small-scale sale of Bitcoin after the performance conference call in May, which the market interpreted as testing market reactions and the flexibility of capital allocation strategies.The analyst pointed out that although Strategy remains highly optimistic about Bitcoin, the success and expansion of the STRC preferred stock financing tool may take precedence in the overall financial arrangements. This move breaks the company's market image of "buying only, not selling" that has lasted for nearly six years. Considering Strategy's strong market influence on Bitcoin demand, this shift is quietly rewriting market expectations.

Strategy founder Michael Saylor confirmed that the dividend yield of the perpetual preferred stock STRC will remain at 11.50% unchanged in June 2026.

According to CoinDesk, Strategy perpetual preferred stock STRC (Stretch) fell to a low of $97.11 on Thursday, then rebounded to $98.57, failing to maintain the par value of $100. The pressure on STRC mainly comes from Bitcoin's drop to around $73,000, compounded by the effects of the ex-dividend date.Recently, Strategy spent $1.5 billion to repurchase zero-coupon convertible bonds maturing in 2029, causing cash reserves to plummet from about $2.25 billion to $871 million. Based on an annual preferred stock dividend obligation of about $1.7 billion, the current cash can only cover about 6 months, far below the previously set target of 24 months. Executive Chairman Michael Saylor stated that the company will raise funds by selling Bitcoin, issuing additional shares when MSTR's stock price exceeds 1.22 times NAV, or continuing to issue STRC.Meanwhile, competitor Strive Asset Management's perpetual preferred stock SATA continues to anchor at a par value of $100, offering about a 13% dividend yield, and plans to launch a daily dividend mechanism, having completely eliminated debt. Over the past three months, Strive's stock price has increased by about 110%, significantly outperforming MSTR's 12% increase and Bitcoin's 8% increase.

Bitcoin Treasuries.NET posted on platform X that Michael Saylor from Strategy stated that the annualized operating rate of STRC reached 24 billion dollars, which alone buys 2 to 3 times the Bitcoin output of miners. Strategy has purchased 11 billion dollars in BTC so far this year, with a buying speed that has reached 2 times the output speed of miners.

Virtus Investment, which manages assets totaling $154 billion, has increased its position in Stretch (STRC) under the Bitcoin treasury company Strategy to 402,880 shares, valued at $40 million.

Strategy founder Michael Saylor stated that the company's goal is to maximize the growth of the credit tool STRC to further expand the scale of Bitcoin purchases and increase the per-share BTC holdings. He also emphasized that the company aims to minimize volatility and uncertainty as much as possible.

Strategy's preferred stock STRC recorded a record trading volume on Thursday, with a transaction amount reaching $1.53 billion, more than quadrupling the average over the past 30 days. Reports indicate that this peak in trading mainly occurred on the eve of the ex-dividend date, with a large number of trades priced at or above the $100 par value level. STRC currently offers an annualized cash dividend of approximately 11.5%, paid monthly.The high trading volume propelled Strategy to complete a new round of Bitcoin accumulation through its ATM (at-the-market) financing mechanism, purchasing approximately 11,707 BTC, allowing the company to continue expanding its position as the largest publicly traded Bitcoin holder in the world. Market data shows that STRC slightly retreated by about 1% in pre-market trading after entering ex-dividend trading, approaching the trading range just below $100, consistent with the usual price adjustment pattern for dividend-paying assets after the ex-dividend date. During the same period, the price of Bitcoin slightly weakened to around $80,500, and Strategy's common stock also fell by about 2%, reflecting the continued significant correlation between cryptocurrency assets and the company's stock price.

Delphi Digital published a report stating that the variable rate Series A perpetual preferred stock STRC of Strategy has an authorized issuance limit of approximately $28.3 billion. If this value is reached without expanding the limit, the accumulation rate of Bitcoin by Strategy may slow down.On Monday, Strategy purchased 535 Bitcoins for $43 million, with most of the funds raised through the sale of Class A common stock MSTR. Currently, Strategy's market net asset value is 1.25 times. Researchers pointed out that when mNAV is low, Strategy uses STRC as the main accumulation tool, and if mNAV expands, it may acquire Bitcoin through the sale of MSTR. Strategy has a cash reserve of $2.25 billion, and the next significant cash obligation will mature in September 2027.

The Bitcoin accumulation plan under Strategy's Stretch (STRC) has been launched during pre-market trading, and sufficient funds have been raised to purchase 15 BTC.

According to The Block, K33 research director Vetle Lunde stated that Strategy's perpetual preferred stock STRC may be becoming an important factor driving the mid-month rise in Bitcoin. Lunde pointed out that STRC dividends are paid on the last day of each month, while the ex-dividend date is set around the 15th of each month.Since Strategy will issue additional shares through the ATM mechanism when the STRC price exceeds the $100 par value and use the raised funds to purchase BTC, the market demand for STRC tends to increase before the ex-dividend date, often leading to more BTC buying.Data shows that the scale of BTC purchased by Strategy through STRC has grown from 4,467 coins in January this year to about 46,872 coins in April. Currently, Strategy's total Bitcoin holdings have reached 818,869 BTC, valued at approximately $6.57 billion.However, K33 also noted that the speed at which STRC returned to par value this month has slowed compared to before, with only 1 BTC added through this tool recently, indicating that market demand may be approaching a phase of plateau.

Delphi Digital stated on platform X that Strategy has raised funds over the years by issuing stock at a premium and cheap convertible bonds.Today, this window has essentially closed. Common stock issuance is constrained by the market-adjusted net asset value (mNAV), the issuance of new convertible debt has been suspended, and STRC has become the primary financing channel. The 11.5% yield is the cost at a lower tier of the capital structure.The repayment order of STRC is behind convertible bonds and preferred stock, so holders are compensated for taking on the impairment risks that the debt layer avoids. Strategy is paying this spread to continue accumulating Bitcoin in the current environment while buying time for the repayment of large debts maturing in 2028.

Strategy's STRC Bitcoin accumulation has begun, and sufficient funds have been raised to purchase 17 BTC.

The cryptocurrency research institution Delphi Digital released the latest report "How Far Can Saylor Stretch It," which systematically analyzes the Bitcoin (BTC) funding expansion mechanism of Strategy, pointing out that its financing structure is transitioning from "low-cost accumulation" to the "diminishing marginal efficiency" stage. The report shows that in the current asset accumulation system centered around Bitcoin, STRC has become the core financing tool for Strategy's continuous purchase of BTC. Initially, it relied on a significant premium in MSTR's stock price (mNAV far exceeding BTC's net value) to achieve a positive cycle of "issuance leads to accumulation," but as the valuation has fallen back to about 1.24 times the EV-based mNAV, the BTC per share enhancement effect from common stock issuance is nearing breakeven.At the same time, while convertible bond tools have played an important role historically, they have accumulated about $8.2 billion in principal and will face concentrated repayment pressure after September 2027, putting long-term sustainability of the financing structure under pressure. STRC provides a continuous financing source for Strategy by offering approximately 11.5% annualized monthly dividends to income-oriented investors, to maintain the pace of BTC purchases. However, this mechanism also introduces ongoing cash flow obligations, meaning that each round of financing increases BTC assets while simultaneously accumulating future dividend burdens.The report emphasizes key risk scenarios: if BTC prices remain stagnant and MSTR's premium fails to recover, then the "STRC financing purchase gain" may be gradually offset by "common stock dilution and dividend obligations." Although the company's approximately $2.25 billion cash reserves can cover about $1 billion in redemption pressure in 2027, larger-scale debt and dividend structures in 2028 still need to be addressed. Additionally, the current authorized issuance limit of about $28.3 billion for STRC becomes a critical constraint point. Once the limit is reached, the ability to purchase new BTC may slow down, but existing dividend obligations will continue to exist, thus altering the overall BTC per share dynamic growth path.

According to The Block, Strategy's Executive Chairman Michael Saylor stated in an interview that even if the company occasionally sells a small amount of Bitcoin, it will quickly replenish it at a ratio of buying back 10 to 20 coins for every 1 sold, emphasizing that it should become a net accumulator of Bitcoin, holding more Bitcoin at the end of each year than at the beginning.Last week, Strategy mentioned in its earnings call that it would consider using its Bitcoin holdings to fund dividends for the STRC perpetual preferred stock plan, no longer viewing it as completely untouchable reserves.