🏛️ #STRCBelowParSlowsStrategyBTCBuys — The Flywheel Stalls
STRC is bleeding. Strategy's preferred stock hit an all-time low of $82.53 and is still hovering around $88–89 — a brutal 11–17% discount from its $100 par value. (Sourcechaincatcher.com)
The buy engine is sputtering because issuing new shares below par is no longer cost-effective. The slowdown is stark: April saw 34,164 $BTC bought ($2.54B), dropping to 24,869 BTC in May ($2B), then collapsing to just 1,550 BTC and 1,587 BTC in the first two weeks of June respectively (~$100M each). (Source: cointelegraph.com)
The red flag the market noticed? Strategy sold 32 BTC in May to cover STRC dividends — the first sell since 2022. Saylor's team tried damage control, claiming the BTC stack covers "32 years of dividends," but confidence is already cracked. (Source: lookonchain.com)
Meanwhile, MSTR is now trading below the value of its Bitcoin holdings at ~0.86x NAV — the premium that powered this flywheel for years has evaporated. Peter Schiff and DonAlt have both labeled the STRC structure a "Ponzi", and the market seems to agree. (Source: x.com)
The bottom line: If STRC can't recover toward $100, Strategy loses its primary funding channel. Bitcoin's largest corporate buyer goes from accumulator to spectator — and that's a headwind crypto can't afford right now.
Not financial advice. STRC's dividend yield at these levels (~13%+) looks tempting, but the structural risk is real.