Strategy's STRC preferred stock slides 11% below par as Bitcoin treasury model faces market skepticism - Cryptopolitan

Crypto Insight Summary: **STRC, Strategy’s variable-rate perpetual preferred stock, ended at $89.15 per share on June 17, more than 11% below its $100 par value.** The drop has raised fresh questions about investor appetite for Bitcoin-backed yield instruments. STRC was designed to offer a variable dividend while helping Strategy raise capital for its Bitcoin treasury strategy, but its widening discount now signals pressure on that funding model. Investors who bought near par have already absorbed a mark-to-market loss roughly equal to a full year of STRC’s current 11.5% annual dividend rate. The security is supposed to trade close to $100, with the variable dividend rate helping stabilize demand. But the drop to around $89 suggests investors are demanding a higher effective yield or questioning the durability of the payout. Reports on June 18 say that the market is betting on higher yields, citing waning confidence in STRC’s dividend stability and Strategy’s funding strategy for future Bitcoin purchases. If the company raises STRC’s yield toward 13%, it could stabilize the preferred stock but increase the cost of capital. On the same day, the STRC tracker estimated that 4.8 million STRC shares traded with no ATM issuance activity. Strategy had also promoted STRC’s growth trajectory a day earlier, saying the instrument was scaling at a roughly 350% annualized rate. On June 15, the company announced that STRC would shift to a semi-monthly dividend schedule, with the first record date under the new cadence set for June 30 and the first payment date expected on July 15, subject to board declaration. Crypto Insight Analysis: Direction: Bearish Strategy Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: STRC's decline signals market skepticism on Bitcoin-backed funding, impacting Strategy's capital strategy.