Svmuu News: STRC, a dividend-paying preferred stock issued by Strategy (MSTR), a company listed on Bitcoin, recently fell below its $100 par value, drawing market attention to its high-yield dividend model, cash reserves, and asset strategy at Bitcoin.STRC was originally designed as a high-yield, low-volatility preferred stock pegged to a $100 par value, attracting investors through consistent dividends and helping Strategy raise funds via ATM (at-the-market offerings) to support dividend payments.However, the recent decline in the price of “Bitcoin,” combined with a series of capital maneuvers by the company, has caused STRC’s price to deviate significantly from its target level. Timeline of this recent decline: May 14: STRC closed at $100 on the ex-dividend date, with the price of “Bitcoin” still above $80,000.However, market pressure had already begun to emerge: competing product SATA announced the adoption of a daily dividend mechanism offering a 13% yield, increasing competitive pressure on STRC. May 15: Strategy announced the repurchase of $1.5 billion in 2029 convertible bonds at a discount of approximately 8%.The market subsequently noted that the company’s U.S. dollar reserves, previously set aside to support dividend and debt payments, were used for this transaction. May 26: Strategy confirmed that cash reserves were used for the bond buyback, reducing the relevant funds to approximately $871 million—equivalent to about six months of STRC dividend coverage—while the company’s previous target had been to maintain approximately 24 months of coverage. June 1: Strategy sold 32 BTC from its “Bitcoin” for the first time since 2022 to demonstrate the company’s ability to support dividends through asset sales. Following the announcement, MSTR’s stock price fell 5.9%. June 5: The Bitcoin fell below $60,000, and STRC dropped to around $90, closing at $93.4. June 8: Strategy shareholders approved a plan to adjust STRC’s dividend frequency from once a month to twice a month; the company also announced that its U.S. dollar reserves had rebounded to $1 billion. June 15: Strategy purchased an additional 1,587 BTC, bringing its U.S. dollar reserves to $1.1 billion. June 18: STRC fell below $83 during intraday trading, about 17% below its $100 target price, hitting a new low since its July 2025 listing, and ultimately closed at $88.59. Currently, Strategy holds approximately 846,842 BTC, with an average cost basis of about $75,656. Based on the price of approximately $62,500 on Bitcoin, the company has an unrealized loss on its books of approximately $11.14 billion. Meanwhile, the market has also begun to focus on the potential dilution pressure resulting from Strategy’s recent fundraising activities. MSTR is currently trading at approximately $112, down about 80% from its all-time high in November 2024. Analysts believe that the core challenge facing STRC lies in the fact that its financial structure is highly tied to the price of Bitcoin: when BTC enters a correction cycle, the market not only reevaluates Bitcoin itself but also begins to reexamine the preferred stock, debt, and financing systems built around Bitcoin.(CoinDesk) The market’s current focus is on whether STRC can return to its $100 par value and whether Strategy’s Bitcoin capital model can be sustained.