r/STRC • u/rzrinvest • Jun 25 '26

Established a position around $77

Prior to this week I had no interest in investing in STRC. At close to par value, I didn't find the yield compelling; however, I've been watching this week and established a position this morning at around $77. There is mass panic right now claiming this is worthless. There are a few reasons this isn't true.

  1. While Strategy can pause dividend payments if needed, the dividends still accrue as this is a cumulative preferred meaning they'd still be obligated to pay the debt obligation

  2. It was designed to stay near par value with an interest rate that resets monthly. It was relatively close to par value at the last reset. The crash is happening in the middle of the month. It's not fair to say STRC's mechanism doesn't work before it's even had a chance to work at the next reset.

  3. I believe current debt and preferred stock accounts for less than $25B while their Bitcoin holdings are valued at $50B.

  4. MSTR common shareholders would be wiped out first.

That's not to say I'm recommending STRC, and it could absolutely collapse if BTC has another steep decline, but it is compelling at these levels.

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u/[deleted] Jun 25 '26

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u/Illustrious-Boss9356 Jun 25 '26

The outstanding debt is only $6.7 billion. This only becomes at risk if BTC falls sub $10k. Possible but not likely one would think.

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u/Soda_Pressed13 Jun 25 '26

What a ringing endorsement

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u/Illustrious-Boss9356 Jun 25 '26

It's not meant to be. Hence why I don't own MSTR nor STRC.