Opinion: STRC depegs to $73, MSTR may enter "priority interest payment" phase
According to Odaily, Jiang Zhuoer posted on the X platform stating that the preferred shares STRC under Strategy have significantly depegged, dropping to a low of around $73, reflecting a temporary panic in US stock market capital towards Bitcoin (BTC)-related assets. Market concerns regarding “systemic risk” (such as FUD) have been amplified. In theory, Strategy can still raise funds by issuing additional common shares, but in an environment where mNAV < 1, such issuance reduces the Bitcoin content per share, making it a “dilutive financing method,” and therefore is viewed as a high-cost operation.
Jiang Zhuoer added that over the past three weeks, Strategy has used this financing method multiple times: in the first two weeks, part of the funds was used to purchase about 1,500 BTC, while in the third week, despite the increased scale of issuance, the amount of Bitcoin purchased dropped to around 520 BTC, with most of the funds used to maintain STRC dividend payments. Based on this, it is believed that the company has clearly shifted its short-term strategy to “prioritizing STRC interest payments,” which implies that, in the coming months, the pace of BTC accumulation may slow significantly or even temporarily stop. However, STRC is essentially a preferred share rather than a debt instrument, so there is no forced liquidation mechanism; Strategy’s overall leverage ratio is about 10%. As long as BTC does not enter a prolonged, deep bear market, the probability of a “blowup-style risk” event remains low.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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