PANews, June 20 – According to a CoinDesk report, Strategy, the bitcoin treasury company, has seen its perpetual preferred stock STRC continue to slide recently, falling below its $100 issuance par value. Intense debate has erupted in the market over the company’s capital structure and the sustainability of its dividend payments. Multiple bearish factors have been unfolding since May. The key timeline is summarized below:

May 14: STRC closed at $100 on the day before its ex-dividend date. At that time, bitcoin was still holding above $80,000, but selling pressure was already evident in the market. During the same period, competitor Strive Asset Management launched its SATA preferred stock, featuring a daily dividend mechanism and an annualized yield of 13%, creating a clear yield advantage over STRC and continuously diverting capital.

May 15: Strategy announced the repurchase of $1.5 billion of its 2029 convertible notes at an approximately 8% discount. The market soon realized that the company’s cash reserves, originally intended to cover dividends and backstop debt, had been heavily deployed in this buyback operation.

May 26: The company confirmed a significant depletion of its cash reserves, with the balance falling to $871 million, enough to cover only about six months of STRC dividend payments. Previously, the company had targeted cash reserves sufficient to support 24 months of dividends, drastically shrinking the buffer.

June 1: For the first time since adhering to its bitcoin accumulation strategy in 2022, the company sold bitcoin, offloading 32 BTC in an effort to prove to the market that it could support dividends by liquidating crypto assets. Following the news, MSTR common stock plunged 5.9% in a single day.

June 5: Bitcoin fell below the $60,000 mark, and STRC simultaneously dropped to around $90.

June 8: The shareholders’ meeting approved an adjustment to STRC’s dividend distribution plan, switching to twice-monthly payments. The company’s cash reserves recovered slightly to $1 billion.

June 15: Strategy purchased an additional 1,587 bitcoins, bringing its cash reserves back up to $1.1 billion, slightly easing liquidity concerns.

June 18: STRC hit an intraday low of $83, a 17% discount to its $100 par value and a record low since its listing in July 2025, closing the day at $88.59.

Market analysis indicates that the core contradiction for STRC lies in the deep coupling of its high-dividend preferred stock structure with bitcoin’s price cycle. As bitcoin enters a downtrend, investors are not only repricing BTC itself but also beginning to comprehensively scrutinize the entire suite of financing instruments and capital systems built on bitcoin assets. Market skepticism has notably intensified regarding the sustainability of Strategy’s “issue preferred stock to buy bitcoin” flywheel model.

The average cash cost for public miners mining Bitcoin has reached $74,600, with a total cost of $137,800.

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