Key facts
- Strategy's preferred stock, STRC, reached a record low of $88 on June 18.
- The decline below its $100 par value has led Strategy to pause new STRC issuances.
- STRC is a key funding tool for Strategy's Bitcoin purchases.
- Strategy recently sold 32 BTC to fund STRC dividend payments.
- The company has established a $1.1 billion U.S. dollar reserve for future obligations.
- Strategy continues to acquire Bitcoin through common stock sales.
Strategy's preferred stock, STRC, has fallen to a record low of $88, raising concerns about the company's ability to continue its aggressive Bitcoin accumulation strategy. The stock, which aims to trade at $100 par value, is now below this level, prompting Strategy to pause new issuances of STRC through its at-the-market program, a key funding channel for Bitcoin purchases.
This decline follows Strategy's recent disclosure of its first-ever Bitcoin sale, where it sold 32 BTC for approximately $2.5 million in late May to cover dividend payments related to STRC. To alleviate investor concerns, Strategy announced it has built a $1.1 billion U.S. dollar reserve to meet future dividend and debt obligations. Concurrently, the company has continued to expand its Bitcoin holdings by purchasing 1,587 BTC using proceeds from common stock sales.
As of the latest reports, Strategy holds approximately 846,842 BTC, representing nearly 4% of Bitcoin's total supply, making it the largest corporate holder of the cryptocurrency. From a technical standpoint, STRC has moved from a growth phase to a sharp breakdown in June, with significant trading volumes indicating strong selling pressure. The Relative Strength Index (RSI) is near 24, signaling oversold conditions, though the overall trend remains bearish.