Strategy's perpetual preferred stock, STRC, traded as low as $82.61 on June 18 before recovering to $88.59 – nearly 17% below its $100 stated amount. The same day, MSTR fell 3.4% to $112.53 and Bitcoin slipped about 2.5% to near $62,730. With roughly $10.5 billion in STRC notional outstanding and an 11.5% annual coupon, the effective yield at that price is about 13%. That's a steep cost for a company that just sold a tiny sliver of its Bitcoin stash for the first time.
Why 32 BTC rattled the narrative
Between May 26 and May 31, Strategy sold 32 Bitcoin for $2.5 million – a drop in the bucket compared to the roughly $1.21 billion in annual STRC dividend costs. But it was the first time Michael Saylor sold any Bitcoin. Tyler Wellener, CSO at Tyr Capital, said that selling Bitcoin weakens Strategy's balance sheet and could spook the market. Large BTC holders may start de-risking, and MSTR shareholders might decide direct Bitcoin exposure is simpler. The 32-coin sale is financially negligible — about 482 times smaller than one year of STRC-only dividends — but it cracked the 'never sell' narrative that propped up the stock.
Ponzi claims and structural critiques
Peter Schiff called STRC 'the most obvious Ponzi.' Tyler Wellener described it as a confidence game in management, not backed or collateralized by Bitcoin. Ryan Haczynski of GlobalStake pointed to on-chain STRC derivatives and tokenized shares combined with large short positions and leverage. When the price slipped, that triggered margin calls and liquidations. Saylor himself acknowledged that ChatGPT played a role in developing the STRC structure, which compounded selling pressure. The whole setup relies on faith that Strategy will keep the dividend flowing — and that it won't sell its Bitcoin hoard.
What could come next
Strategy still holds 845,256 BTC as of June 7, after buying 1,550 Bitcoin for $101.3 million in the same period. But the STRC dividend math is getting tighter. At the current 11.5% rate, annual cost is roughly $1.21 billion. If Strategy raises the dividend to 14% – something it can do via a monthly adjustment – that cost jumps to about $1.47 billion. Haczynski suggests the company's next moves could include a higher dividend rate, opportunistic buybacks of discounted STRC, or additional capital raises using MSTR or traditional debt. With the stock trading below par, the pressure is on Saylor to reassure holders before the next dividend adjustment date.
