BTC Crash Pushes Strategy's $12B Loss as STRC Drops 20%" -

Strategy’s Bitcoin treasury has fallen roughly $12 billion below aggregate purchase cost, placing the company’s capital-raising model under its sharpest pressure since it accelerated its BTC accumulation strategy. The company held 847,363 Bitcoin as of June 21, acquired for $64.1 billion at an average price of $75,651. With BTC recently trading near $60,000 to $62,000, the position was worth about $52 billion, and MSTR has slipped under $100, its lowest level in roughly two years.

The pressure has spread to STRC, Strategy’s variable-rate perpetual preferred stock designed to trade near $100. It has fallen to about $81, almost 20% below the stated amount the company seeks to maintain, lifting the effective yield to roughly 14.2% for new buyers. With about $10.5 billion of STRC outstanding, even a modest rate increase would materially expand Strategy’s annual dividend expense, and a persistent discount weakens the instrument’s ability to raise future financing.

Why it matters

Strategy’s accumulation model has worked most efficiently when MSTR traded at a premium to the Bitcoin on its balance sheet. That premium let the company raise capital through stock sales while limiting dilution. As BTC and MSTR have declined, the premium has narrowed, and Strategy’s behavior is already shifting: this week the firm raised about $335.5 million through common-stock sales but deployed only $34.9 million to buy 520 additional BTC, directing the remainder to a roughly $1.4 billion cash reserve. The company also sold 32 Bitcoin last month for about $2.5 million, its first net disposal since 2022, with proceeds earmarked for STRC distributions.

Market impact

STRC options traders are positioning for both a managed recovery and a deeper discount. Total options volume reached about 10,400 contracts, 167% of the 6,220 daily average, with a put-call ratio of 1.35. Open interest clusters at the $95 and $100 calls (9,432 and 5,518 contracts respectively), but downside exposure extends to 2,994 contracts at the $60 put, a strike that would put STRC 40% below par and push the effective yield above 19%. Market observers remain divided on whether the dislocation is a temporary loss of confidence or a structural flaw: Su Zhu of Three Arrows Capital argues stronger hands could absorb the yield at lower prices, Charles Edwards of Capriole says Strategy must reduce reliance on BTC appreciation and build income sources independent of price, and Strive’s Joe Burnett notes STRC holders cannot redeem against the treasury, a key distinction from the 2022 TerraUSD collapse.