Crypto Inc

THE LARGEST BITCOIN CUSTOMERS ON EARTH ARE PERHAPS ENTERING ITS MOST DANGEROUS PHASE TODAY.
Strategy is now facing the very pressure that could ultimately force it to sell Bitcoin.
STRC collapsed to $82.53 yesterday, down more than 17% from the $100 it was designed to hold.
STRC is a financial product created by Michael Saylor to attract cash and buy more Bitcoin.
Saylor said he designed it using ChatGPT, and that the AI ​​told him that no one in the history of finance had ever created such a tool. It was legal, it was intelligent, and no one had any reason to create it before.
For months, it worked exactly as ChatGPT intended. It traded in a tight range around $100 and paid an 11.5% annual dividend. Then Bitcoin began to fall.
Bitcoin is currently around $62,000, down more than 5% this week. Strategy holds 846,842 bitcoins, worth about $53 billion at current prices.
As Bitcoin falls, so does confidence in STRC, and the price has fallen far below the $100 it's supposed to hold.
Here's how much that 11.5% dividend is actually worth in real money:
1. Strategy has approximately 104.9 million STRC shares outstanding.
2. At $11.50 per share annually, that's about $1.21 billion per year owed to STRC holders alone.
3. This amount is paid out in cash every 15 days.
Strategy has suspended its entire fundraising program through STRC.
Here's why this decision is directly costing them a pretty penny:
1. If they need to raise $500 million and STRC is trading at par, they have to issue 5 million new shares.
2. At the current price of $87, raising the same $500 million would require about 5.75 million shares instead.
3. That's 750,000 additional shares created for the same amount of cash, and each of those shares is forever liable for the full $11.50 dividend.
Selling below par not only makes less money, but also permanently increases the amount of cash they must pay out annually for the same dollars raised. That's why the machine is completely disabled.
There are already warning signs of what's to come.
At the end of May, for the first time since 2022, Strategy sold a small amount of Bitcoin—32 coins for $2.5 million—specifically to cover the STRC dividend payment.
Here's what it would look like if this became a normal method of paying dividends instead of a one-time event:
1. STRC's total annual liability is approximately $1.21 billion.
2. At the current Bitcoin price of $62,000, covering this entire amount through Bitcoin sales alone would require selling approximately 19,516 Bitcoin per year.
3. This is more than 600 times the 32 coins they sold in May.
4. This is still a small fraction of their total holdings of 846,842 Bitcoin, but it's the difference between a one-time decision and a recurring habit.
This violated the one rule on which the entire company was built. Strategy doesn't sell Bitcoin.
So is Strategy actually in trouble right now?
No.
STRC is worth less than their debt, holders can't force the company to pay, and the dividend could be reduced or skipped at any time. The balance sheet isn't collapsing.
But the pressure point is clear.
The dividend rate has already been raised from 9% to 11.5%. Each 0.5% increase on 104.9 million shares adds approximately $52.45 million per year to Strategy's payout.
This leaves Strategy with three options, and all three lead to the same conclusion:
1. Raise the dividend rate again to protect the price. This directly increases the cash liability.
2. Continue funding the dividend by selling Bitcoin. This violates the one rule on which the entire company was built.
3. Issue new STRC shares below $100 to raise cash. This permanently locks in a higher dividend bill for a smaller amount raised.
Each option leads to the same requirement: Bitcoin must rise.