CryptoSlate
Strategy (formerly MicroStrategy) is targeting September 8 as an informal benchmark for returning its STRC perpetual preferred stock to par after a bruising second quarter that exposed the financing model underpinning its Bitcoin accumulation strategy. The company reported an $8.22 billion Q2 loss, almost entirely from an $8.32 billion mark-to-market hit on its digital assets as Bitcoin ended June roughly 40% below its level a year earlier. Holdings still grew 11% during the quarter to 846,000 BTC, but the firm was forced to sell 3,620 BTC later in the period to meet preferred-stock obligations, dropping the stack to 843,775 BTC and trimming Bitcoin per diluted share to 203,683 satoshis by July 26.
Why it matters
STRC is no longer a side product. Its stated value nearly doubled in Q2 to $10.5 billion, and Strategy raised $7.53 billion through the variable-rate preferred during the first seven months of the year, making it one of the company's largest sources of new capital. Institutional holdings nearly tripled to $3.1 billion between March 17 and July 1, lifting their share of the outstanding stock to 29% from 22%. That growth is a vote of confidence in the vehicle, but it also widens the cash burden when Bitcoin drops. STRC dropped to $74.57 on May 28 after the dollar reserve covering dividends and debt interest fell to just $871 million, or roughly six months of coverage. Strategy has since rebuilt that reserve to $3.75 billion, extending estimated coverage to 2.1 years, and authorized $1 billion in buybacks, of which $25 million has been spent.
Market impact
Saylor is leaning on a 70-trading-day mirror of STRC's IPO climb from $90 to $100 in mid-2025, applied forward from the May 28 trough to land on September 8. The repair matters beyond optics: STRC's effective yield of 13.6% in late July reflects a discount to its $100 stated value, and issuing more shares at the current price raises less cash than the $100 senior claim created against Strategy, weakening the Bitcoin-financing tool.
Frequently asked questions
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Why is Strategy targeting September 8 for STRC?
Saylor is using a 70-trading-day mirror of STRC's IPO climb from $90 to $100 in mid-2025, applied forward from the May 28 trough. The date is an informal benchmark, not a guarantee, and depends on demand recovering enough to close the discount to par.
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How much did Strategy lose in Q2 2026?
Strategy reported an $8.22 billion second-quarter loss, almost entirely from an $8.32 billion mark-to-market hit on its digital assets as Bitcoin ended June roughly 40% below its year-ago level.
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How many Bitcoin did Strategy sell to meet STRC obligations?
Strategy sold 3,620 BTC after Q2 to meet preferred-stock obligations, dropping holdings from 846,000 BTC to 843,775 BTC. Purchases exceeded sales by more than 48 times in the first seven months of the year, but the disposal still trimmed Bitcoin per diluted share to 203,683 satoshis.
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What is STRC and why does it matter for Strategy?
STRC is a variable-rate perpetual preferred stock with a 12% dividend. Its stated value nearly doubled in Q2 to $10.5 billion, and Strategy raised $7.53 billion through it in seven months, making it one of the company's largest sources of new capital alongside a growing institutional holder base.
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What is Strategy's 2033 Bitcoin per share target?
CEO Phong Le said Strategy wants to double Bitcoin per diluted share in seven years through digital credit, implying roughly 10% annual growth. The plan relies on issuing STRC and other preferreds, retaining part of the proceeds in a dollar reserve, and using the rest to buy Bitcoin without the immediate dilution of…
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