STRC’s plunge puts Saylor’s Bitcoin dividend machine under pressure
Strategy’s STRC perpetual preferred stock fell as low as $82.61 and ended at $88.59, far below its $100 target, even as Bitcoin slipped only modestly and MSTR dropped 3.4%. The move highlighted growing concern that STRC’s price stability depends on confidence, not hard collateral, despite its 11.5% annualized dividend and monthly rate adjustments. With about $10.5 billion outstanding, STRC already implies roughly $1.21 billion in annual dividend cost, and any rate hike would increase that burden sharply. Critics say the structure resembles a reflexive financing loop: if STRC stays below par, Strategy may need higher dividends, more MSTR issuance, buybacks, or even Bitcoin sales to fund payouts. The company recently sold 32 BTC to help cover distributions, then repurchased more Bitcoin, but that did little to calm concerns. Market participants warn that if STRC cannot regain par, it may start trading like distressed Bitcoin credit rather than a stable yield product.
