STRC slips below par as Strategy's (MSTR) cash reserves face growing scrutiny
Strategy’s perpetual preferred STRC fell to $97.11 as bitcoin dropped toward $73,000. STRC often weakens during bitcoin selloffs and just after ex-dividend dates, and Strategy wants it near $100 par so it can keep issuing shares through its ATM program. Strategy recently repurchased $1.5 billion of 0% convertible notes due 2029, but funded the buyback with cash, cutting its U.S. dollar reserve from about $2.25 billion to $871 million. That leaves only around six months of coverage for roughly $1.7 billion in annual preferred dividend obligations. Michael Saylor said funding options include selling bitcoin, issuing MSTR equity above 1.22x NAV, or issuing more STRC, with a focus on bitcoin per share accretion. Strive’s competing perpetual preferred, SATA, has stayed near $100 par while offering about a 13% yield, helped by a planned daily dividend structure. Strive also removed inherited debt, and its stock has outperformed Strategy and bitcoin over the past three months.
