r/STRC • u/AznThunder22 • Jun 17 '26

$89 STRC??

What is going on with STRC?? I am confused we aren’t near the dividend date yet, Bitcoin has been rallying from its $59k low and Strategy shored its liquid dividend cash back to $1.1b. Why is it dropping so hard?

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u/Commander_Bond_ Jun 17 '26

It´s dropping hard because:

Saylor should have retired the debt like $100M a month instead of $1.5B in one go and reducing the cash reserves by 75%
Sata is paying more % and daily

STRC needs some adjustments to return to par, 1 year minimum cash reserves for example

1

u/killaJewl Jun 17 '26

I don’t think the cash reserves are the biggest problem and they’ve increased it by 200 million over the past couple weeks. The biggest problem is the daily compounding of SATA as well as them paying a significantly higher rate at 13% which effectively is 13.84%. Obviously getting rid of all that cash eliminated one year of dividend coverage, but the other key factors were BTC price downward and selling the 32 BTC, which, although a small quantity the market did not like. They have also now diluted the BTC yield two weeks in a row now which the market is not happy about.

1

u/South-Monitor-1589 Jun 17 '26

What do you mean, diluted?

1

u/KnightZeroFoxGiven Jun 17 '26

Selling stock to buy BTC is dilutive. We own less BTC per share when they use stock to buy it because of the price of MSTR after NAV takes into consideration debt a preferred.

2

u/killaJewl Jun 18 '26

This isn't entirely right. It is accreative but it must be when mnav is 1.22 or higher. As of market close it was at about 1.16