CoinDesk
Strategy's perpetual preferred security STRC slipped to $97.11 on Thursday before recovering to close at $98.57, breaking its tight peg to $100 par and reigniting questions about whether the company can keep funding bitcoin acquisitions through at-the-market issuance of the instrument. The intraday weakness landed the same week a $1.5 billion repurchase of 0% convertible senior notes due 2029 drained Strategy's cash balance from roughly $2.25 billion to about $871 million — enough to cover only six months of the company's estimated $1.7 billion in annual preferred dividend obligations, down from the 24-month cushion the reserve was originally sized to provide.
Why it matters
Executive Chairman Michael Saylor outlined the fallback stack in a recent CoinDesk interview: selling bitcoin, issuing more MSTR equity when the stock trades above 1.22x net asset value, or leaning further on STRC issuance itself — each filtered through a bitcoin-per-share accretion lens. The mechanics matter because STRC's value as a capital-raising tool depends on the security trading near par; persistent sub-$100 prints would force Strategy to issue more shares for the same dollar of proceeds, diluting the per-share math the company sells to holders. Strive Asset Management has used the window to differentiate: its perpetual preferred SATA has held close to $100 for two weeks while offering roughly a 13% dividend yield, and the company has announced — though not yet implemented — daily dividend payments designed to anchor the security tighter to par. Strive has also retired all debt inherited through its Semler Scientific acquisition, mirroring the deleveraging direction Strategy is now pursuing.
Market impact
The performance gap is stark: over the past three months ASST is up roughly 110%, MSTR up about 12%, and bitcoin up about 8%. Investors are paying for the cleaner balance sheet and the higher-yielding preferred structure, and the STRC weakness suggests that trade is no longer purely equity-driven — it's now showing up in the funding instrument itself.
Frequently asked questions
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What is Strategy's STRC and why does the $100 par price matter?
STRC is Strategy's perpetual preferred security, structured to trade near $100 par. Maintaining that peg is what lets the company issue new shares through its at-the-market program at full value to fund bitcoin acquisitions; persistent sub-$100 prints would force more share issuance per dollar raised.
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How much cash does Strategy have left after the recent convertible buyback?
Strategy's cash balance fell from roughly $2.25 billion to about $871 million after repurchasing $1.5 billion of 0% convertible senior notes due 2029. That reserve now covers only about six months of the company's estimated $1.7 billion in annual preferred dividend obligations.
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What did Michael Saylor say about covering Strategy's dividend obligations?
In a CoinDesk interview, Executive Chairman Michael Saylor outlined three fallback options: selling bitcoin, issuing additional MSTR equity when the stock trades above a 1.22x multiple to net asset value, or raising further capital through STRC issuance. He said all decisions are filtered through a bitcoin-per-share…
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How does Strive's SATA preferred compare to Strategy's STRC?
Strive's perpetual preferred SATA has stayed tightly anchored around its $100 par value for two weeks while offering roughly a 13% dividend yield, even during bitcoin's recent decline. Strive has also announced — though not yet implemented — daily dividend payments designed to stabilize the security at par, and has…
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How have Strategy and Strive shares performed over the past three months?
Over the trailing three months, Strive (ASST) gained roughly 110%, Strategy (MSTR) rose about 12%, and bitcoin gained about 8%. The divergence suggests investors are rewarding Strive's cleaner balance sheet and higher-yielding preferred structure over Strategy's larger but more leveraged treasury model.
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