Strategy sold $100M to defend STRC’s $100 stock price as DeFi packages the risk into a 7% ‘safer’ trade

Solstice announced a tranched product built on Strategy's Bitcoin-related STRC preferred stock, and said its senior tranche would not begin absorbing losses until STRC trades below $47.66.

STRC currently trades near $95.315, putting that threshold roughly half of today's market price and about 52% below the security's $100 par value.

Solstice COO David Plisek described the $47.66 level as a modeled senior-impairment threshold under the protocol's current coverage structure and assumptions, both of which the team can revise.

How Bitcoin holds the line

Strategy has spent the past six weeks actively managing STRC's price. The company announced a Digital Credit Capital Framework on June 29, combining a dollar reserve policy, a revised dividend structure, and repurchase authorizations, with an explicit goal of keeping STRC trading between $99 and $100.

Between July 20 and July 26, Strategy repurchased 288,930 STRC shares for about $25 million at an average price near $86.52.

In early August, the company sold $108.6 million worth of Bitcoin and used the proceeds to repurchase 1,152,020 STRC shares, on top of a $4.65 billion dollar-denominated reserve reported as of Aug. 9.

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