Strategy's preferred stock STRC trades below par, sparking fears over its BTC strategy

Strategy's perpetual preferred stock (STRC) has fallen to $94.84, a 5.2% discount to its $100 par value, sparking analysis that a crack has formed in the company's BTC acquisition structure amid a sharp crypto market downturn. According to Decrypt, Ryan Yoon, a senior analyst at Tiger Research, said the stock trading below its peg signifies a flaw in Strategy's high-leverage approach to buying BTC. Yoon explained that due to the burden of massive dividend obligations, hedge funds have been concerned that Michael Saylor might be forced to sell some of the company's BTC holdings to service its debt. This possibility has undermined the narrative of never selling BTC, placing immediate downward pressure on the cryptocurrency's price, he added.