**Input content is:** Replaying the Timeline of STRC Falling Below $100: Strategy's Bitcoin Capital Model Faces a Stress Test

According to Odaily, the dividend-paying preferred stock STRC issued by Bitcoin treasury company Strategy (MSTR) recently fell below its $100 par value, drawing market attention to its high-yield dividend model, cash reserves, and Bitcoin asset strategy. STRC was originally designed as a high-yield, low-volatility preferred stock pegged to a $100 par value, attracting investors through continuous dividends and helping Strategy finance dividend payments through ATM (At-The-Market) offerings. However, the recent decline in Bitcoin price, coupled with a series of the company's capital operations, has caused the STRC price to deviate significantly from its target level. The timeline of this decline event is as follows:

May 14: STRC closed at $100 on the ex-dividend date, with Bitcoin price still above $80,000. However, market pressure had already begun to emerge, and the competing product SATA announced the adoption of a daily dividend mechanism, offering a 13% yield, increasing competitive pressure on STRC.

May 15: Strategy announced the repurchase of $1.5 billion of its 2029 convertible notes at approximately an 8% discount. The market subsequently noted that the company's dollar reserves, previously established to support dividends and debt payments, were used for this transaction.

May 26: Strategy confirmed that cash reserves participated in the bond repurchase, and the relevant fund scale was reduced to approximately $871 million, equivalent to about 6 months of STRC dividend coverage capability, whereas the company had previously aimed to maintain approximately 24 months of coverage.

June 1: Strategy sold Bitcoin for the first time since 2022, selling 32 BTC to demonstrate the company's ability to support dividends through asset sales. Following the announcement, MSTR's stock price fell by 5.9%.

June 5: Bitcoin fell below $60,000, and STRC dropped to around $90, closing at $93.4.

June 8: Strategy shareholders approved a change in STRC's dividend frequency, from once a month to twice a month; the company also stated that dollar reserves had rebounded to $1 billion.

June 15: Strategy purchased an additional 1,587 BTC, and dollar reserves rose to $1.1 billion.

June 18: STRC fell below $83 during trading, approximately 17% lower than the $100 target price, hitting a new low since its listing in July 2025, and eventually closed at $88.59.

Currently, Strategy holds approximately 846,842 BTC, with an average cost of about $75,656. Based on Bitcoin's approximate price of $62,500, the company has an unrealized book loss of approximately $11.14 billion.

Meanwhile, the market is also beginning to focus on the potential dilution pressure arising from Strategy's recent financing activities. MSTR's current price is approximately $112, down about 80% from its all-time high in November 2024.

Analysts believe that the core challenge facing STRC lies in its financial structure being highly correlated with the Bitcoin price: when BTC enters an adjustment cycle, the market not only reassesses Bitcoin itself but also begins to re-evaluate the preferred stocks, debt, and financing systems built around Bitcoin. (CoinDesk)

The current market focus is: whether STRC can regain its $100 par value, and whether Strategy's Bitcoin capital model can continue to be maintained.