MicroStrategy’s STRC Tracks Bitcoin Lower Again as Semi-Monthly Dividend Begins

MicroStrategy’s STRC preferred stock dropped toward $90 this week as Bitcoin (BTC) slid under $63,000, then clawed back toward its $100 par, repeating a pattern that has shadowed every major Bitcoin drawdown this year.

The move landed days before shareholders approved a shift to semi-monthly dividends, a change the company says should steady the share price and tighten trading around par.

Why MicroStrategy’s STRC Keeps Tracking Bitcoin

Strategy (Nasdaq: STRC) sells its Variable Rate Series A Perpetual Stretch Preferred Stock to fund Bitcoin purchases, paying an 11.5% annual dividend it has held unchanged for a fourth straight month.

The stock is built to trade near $100, with the rate resetting to draw buyers in whenever it slips below par.

That design has been tested repeatedly. STRC fell below $95 on June 3 for the first time in three months, closing at $94.65 as Bitcoin dropped to $62,000 and liquidations topped $1.6 billion. By June 8 it traded around $93, after an intraday low near $90.

The discount matters because MicroStrategy issues fresh STRC mainly when shares sit at or above par, and it has paused those sales before when the gap widened.

The preferred has funded roughly 77,000 BTC in purchases this year, more than spot ETFs bought on net across the entire US market.

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Bitcoin Remains the Dominant Driver

Strategy held 845,256 BTC as of June 9, against a roughly $1 billion cash reserve set aside for dividends and debt service.

With that balance sheet, STRC moves less on its own mechanics than on BTC price sentiment, a link visible each time a Bitcoin sale pressures the shares.

Analyst Michael van de Poppe argues Bitcoin is stalling beneath $65,000, a level that flipped from support to resistance after February’s crash.

A clean break higher, he says, could open a fast run toward $72,000 to $74,000, easing pressure on the preferred.

The Bear Case

Not everyone expects a clean snap back. Economist Peter Schiff contends the discount reflects the model itself, not only the price of Bitcoin.

“STRC may not go back to par unless MSTR raises the dividend. That may not happen,” Schiff indicated.

Schiff argues recent buys leave common holders worse off. MicroStrategy counters that the semi-monthly schedule, which covers STRC dividends from operating cash, will dampen volatility and speed reinvestment, beginning with a June 30 record date and a July 15 payment.

The first real test comes at month end, when the new cadence meets whatever Bitcoin does next.

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