STRC Breaks Below Par Value Timeline Review: From Bond Repurchase to the Chain Reaction of BTC Decline

According to CoinDesk, the dividend-paying preferred stock STRC issued by Bitcoin treasury company Strategy recently fell below its par value of $100, sparking discussions in the market about its capital structure and solvency. Key timeline events are as follows:

• May 14: STRC closed at $100 before the ex-dividend date, while the price of Bitcoin remained above $80,000, but market pressure was already evident. During the same period, Strive Asset Management announced that its competing product SATA would adopt a daily dividend mechanism, increasing its yield to 13%, further intensifying competitive pressure on STRC.
• May 15: Strategy announced a buyback of $1.5 billion of 2029 convertible bonds at approximately an 8% discount. The market then noted that the company's dollar cash reserves used for dividends and debt support were utilized for this transaction.
• May 26: Strategy confirmed that cash reserves participated in the bond buyback, reducing the fund size to approximately $871 million, which only covers about 6 months of STRC dividend payments, whereas the company's previous target was to maintain coverage for about 24 months.
• June 1: Strategy sold Bitcoin for the first time since 2022, selling 32 BTC to demonstrate its ability to support dividend payments through asset sales. Following the announcement, MSTR's stock price fell by 5.9%.
• June 5: Bitcoin fell below $60,000, and STRC dropped to around $90.
• June 8: Strategy shareholders approved changing STRC to pay dividends twice a month, while the company disclosed that dollar reserves had risen to $1 billion.
• June 15: Strategy repurchased 1,587 BTC, increasing dollar reserves to $1.1 billion.
• June 18: STRC fell below $83 during intraday trading, about 17% lower than the target price, marking a new low since its listing in July 2025, ultimately closing at $88.59.

Analysis suggests that the core challenge facing STRC lies in its high-yield preferred stock structure being highly correlated with the Bitcoin cycle. In a Bitcoin bear market environment, investors are not only reassessing BTC itself but also beginning to reevaluate the financial products and capital systems built around Bitcoin.