Odaily Odaily Planet Daily News, crypto analyst Murphy stated that the current depeg of STRC can be seen as an extreme stress test for the market. He believes that the depeg of STRC temporarily strips it of its financing capability, and the subsequent time required to repeg will directly impact the market's level of concern regarding whether Strategy will sell Bitcoin again.
Murphy pointed out that Strategy previously sold only 32 BTC. Although the actual selling pressure was limited, it still broke through the psychological defenses of some long-term holders. Since the relevant announcement, the net holdings of long-term holders (LTHs) have begun to decline, with the distribution rate once exceeding the combined rate of LTH accumulation and short-term holder conversion. This disrupted the market's original supply-demand balance and pushed BTC to rapidly decline from $74,000 to around $60,000.
Murphy stated that the market is currently highly focused on the STRC depeg incident, which essentially reflects investors' sensitivity to whether Strategy will continue selling coins. If it triggers another large-scale sell-off by long-term holders, current market demand may struggle to absorb it effectively. However, he also believes that the liquidity generated by cascading sell-offs provides opportunities for large capital to accumulate chips. When negative news is continuously released but prices become increasingly difficult to push lower, it often signals that the market's extreme stress test is nearing its end.
Odaily Strategy founder Michael Saylor stated that the company's newly issued variable-rate perpetual preferred stock, STRC (Stretch), was designed with the assistance of artificial intelligence.
Saylor mentioned that he engaged in several hours of discussion with AI regarding the product structure and continuously verified the feasibility of different design approaches. He expressed a desire to create a preferred stock product that "pays monthly dividends and maintains a stable price around $100," and the AI provided a specific implementation path. When asked about precedents for similar products, the AI responded after searching that "nobody has ever done this before in history, but the plan is legal and feasible." (CoinDesk)
Odaily Strategy's dividend-paying preferred stock Stretch (STRC) fell to a low of $82.53 on Tuesday, hitting its lowest level since its listing in July last year. The product currently offers an annual dividend yield of 11.5%, and Michael Saylor has previously compared it to money market funds and FDIC-insured bank accounts.
Since STRC's listing, Strategy has issued over $10 billion worth of related shares to accelerate Bitcoin purchases. The company currently holds 846,842 Bitcoin, valued at approximately $53 billion at the time of writing. Saylor stated in April that retail buyers hold about 80% of STRC and estimated that roughly 3 million households have allocated to this product.
In the STRC prospectus, Strategy disclosed that the value and liquidity of this preferred stock are subject to market fluctuations, interest rate changes, the lack of an established trading market, and its subordinated status relative to the company's debt. Last month, the company sold 32 Bitcoin to manage the recurring costs of STRC and stated that its Bitcoin reserve could cover 32 years' worth of dividends.
Odaily reported that SolanaFloor posted on X, stating that the price of Strategy’s STRC has dropped to $86, hitting an all-time low. This represents a 14% discount to its $100 par value, with selling pressure continuing to increase.
Odaily Odaily reports that Joe Burnett, Vice President of Bitcoin treasury company Strive, stated that if Strategy cannot pay STRC dividends, Bitcoin could perish.
Odaily reported that Jiang Zhuoer stated in a post that MicroStrategy (MSTR) currently holds approximately $55 billion in Bitcoin assets, corresponding to an annual dividend payment of about $1.7 billion for its STRC preferred stock. Theoretically, selling BTC could cover dividend requirements for roughly 32 years.
STRC is classified as preferred stock rather than a debt instrument, so there is no traditional mandatory principal repayment pressure. From a financial structure perspective, MSTR does not face "liquidation-style leverage risk" or short-term solvency crises. However, the discussion itself reflects growing market concerns about the company's long-term cash flow and cryptocurrency asset volatility. STRC has already experienced significant discount fluctuations, limiting its refinancing capabilities.
Furthermore, MSTR has recently relied more on issuing common stock (which may dilute BTC per share when mNAV is below 1) to fund its BTC accumulation. This strategy is difficult to sustain over the long term.
Jiang Zhuoer indicated that even if the scale of MSTR's actual BTC sales to pay dividends is relatively small compared to the broader market, the symbolic significance may be more important. It could pressure market confidence and prompt investors to reassess the possibility of "long-term passive BTC selling." Market understanding of this structure is not uniform, and this divergence in perception itself could become an important factor influencing expectations and sentiment.
Odaily Odaily reports that Strategy preferred stock STRC has fallen below $90, temporarily trading at $89, with a 24-hour decline of 3.04%, deviating 11% from the target price of $100.
Odaily reported that BitcoinTreasuries.NET posted on X platform that Strategy's STRC preferred stock closed at $89 today, with an effective yield of 12.9%. This is its lowest daily closing price since its IPO and the lowest dividend-adjusted closing price since November.
