How STRC lost its par: The timeline behind Strategy’s preferred-stock meltdown
From a bond buyback and dwindling cash reserves to a bitcoin bear market, the sequence of events that turned STRC’s par-value challenge into a marketwide debate.
Make preferred on
Share this article
Summary
- Strategy’s preferred stock STRC, designed to hold a price of $100, on Thursday dropped to a low of $83.
- A number of events led up to the slide, including a buyback of convertible notes at an 8% discount and rival Strive saying it would start paying a daily dividend on its SATA equivalent.
- The decline was also driven by a combination of falling bitcoin prices, reduced liquidity buffers and weakening investor confidence.
