Strategy can’t get STRC back to parity

Strategy, Michael Saylor’s BTC holding company, has been under a lot of pressure, with shares plummeting 73% since July of last year.

However, more importantly, one of Strategy’s dividend instruments, STRC, which pays twice-monthly dividends on $100/share of par value, fell from parity on May 15 and has never returned.

That’s almost 100 days without being able to bring the preferred shares back to parity — and it’s a problem.

Trying to dig itself out of a hole

Despite Saylor, Strategy’s founder and executive chairman, making vague promises that no BTC would be sold (which he later clarified was in relation to his personal stash, not the BTC owned by Strategy), the company has sold almost 7,000 BTC worth nearly half a billion US dollars since June.

These sales have been used to prop up Strategy’s dollar reserves so they can ensure dividends to its preferred share holders.

Read more: Strive bought STRC instead of holding ‘idle cash,’ lost over $4M

Unfortunately, these sales of BTC and repurchases of STRC, while effectively raising STRC from the doldrums of $75/share that it briefly fell to in June, haven’t been enough to actually take STRC back to $100/share.

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