Timeline Recap of STRC Falling Below Par: The Chain Reaction from Bond Buybacks to Bitcoin Decline

According to TechFlow on June 20, as reported by CoinDesk, STRC—the dividend-paying preferred stock issued by Bitcoin treasury company Strategy—recently fell below its $100 par value, sparking market discussions about the firm’s capital structure and solvency. Below is a recap of key milestones:

May 14: STRC closed at $100 ahead of its ex-dividend date, with Bitcoin still trading above $80,000, though market pressure was already emerging. Around the same time, Strive Asset Management announced that its competing product, SATA, would adopt a daily dividend mechanism, boosting its yield to 13%, further intensifying competitive pressure on STRC.

May 15: Strategy announced the repurchase of $1.5 billion of its 2029 convertible bonds at an approximate 8% discount. The market subsequently noted that the company’s U.S. dollar cash reserves—originally earmarked for dividends and debt support—were used for this transaction.

May 26: Strategy confirmed that its cash reserves were used in bond repurchase agreements, reducing the cash balance to approximately USD 871 million, equivalent to covering only about six months of STRC dividend payments, down from the company’s previous target of maintaining roughly 24 months of coverage.

June 1: Strategy sold Bitcoin for the first time since 2022, offloading 32 BTC to demonstrate its ability to support dividend payments through asset sales. Following the announcement, MSTR’s share price fell by 5.9%.

June 5: Bitcoin dropped below USD 60,000, and STRC fell to around USD 90.

June 8: Strategy shareholders approved changing STRC’s dividend schedule to semi-monthly payouts, while the company disclosed that its U.S. dollar reserves had rebounded to USD 1 billion.

June 15: Strategy purchased an additional 1,587 BTC, raising its U.S. dollar reserves to USD 1.1 billion.

June 18: STRC dipped intraday below USD 83, approximately 17% below its target price and hitting a new low since its July 2025 listing, before closing at USD 88.59.

Analysts believe STRC’s core challenge lies in its high-yield preferred equity structure being tightly linked to the Bitcoin cycle. In a Bitcoin bear market, investors are not only reassessing Bitcoin itself but also reevaluating financial products and capital structures built around it.

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