Strategy’s Preferred Stock Trades Below Par After Selling 32 Bitcoins
STRC•STRC•STRC•STRC•Strategy sold 32 BTC in its first Bitcoin sale in years, heightening downside risk with Bitcoin potentially falling below $50,000. Its perpetual preferred stock STRC has traded below par, cutting off its primary fundraising lever and raising concerns over sustaining its 11.5% dividend.
Strategy executed its first Bitcoin sale in years by selling 32 BTC, intensifying downside risk as historical bear cycles suggest further drawdowns past $50,000.
STRC perpetual preferred shares slipped below par, cutting off the company’s primary fundraising lever used to acquire more Bitcoin and signaling investor skepticism about its capital-raising capacity.
With its main cash-raising channel impaired, Strategy faces challenges sustaining the 11.5% dividend on STRC, raising the prospect of additional Bitcoin sales if alternative funding sources remain unavailable, which could further depress both Bitcoin and STRC prices.
