Overview
- Michael Saylor publicly compared one‑year results on Sunday, saying Bitcoin fell about 47% while Strategy’s STRC preferred returned roughly 9%.
- STRC is a variable‑rate perpetual preferred that advertises a 12% annual dividend paid semi‑monthly, but dividend payments and repurchases require board action and available funds and the shares are not collateralized by Strategy’s Bitcoin.
- After reporting a large GAAP Q2 loss from unrealized Bitcoin markdowns, Strategy shifted in late July to active balance‑sheet moves that included pausing purchases, selling modest BTC tranches, and rebuilding a dollar reserve.
- The company has authorized up to $1 billion for digital‑credit repurchases and reporters say cash reserves have risen, actions markets view as aimed at keeping STRC trading nearer its $100 stated value.
- Analysts say STRC’s income structure can blunt short‑term downside but investor outcomes depend on Strategy’s future monetization, dividend choices, repurchase activity, and Bitcoin’s near‑term price around $61k–$64k because sales can crystallize losses and affect market liquidity.