STRC's drop below par value: A timeline recap – from bond buybacks to the BTC price decline.

According to CoinDesk, Strategy's dividend-paying preferred stock, STRC, recently fell below its $100 par value, sparking discussions about its capital structure and solvency. Key dates are as follows: May 14: STRC closed at $100 before its ex-dividend date. While Bitcoin's price remained above $80,000, market pressure was evident. Simultaneously, Strive Asset Management announced that its competing product, SATA, would adopt a daily dividend payout mechanism, increasing its yield to 13%, further intensifying competition for STRC. May 15: Strategy announced a $1.5 billion buyback of its 2029 convertible bonds at an approximately 8% discount. The market subsequently noted that the company's dollar cash reserves, used for dividends and debt support, were used in this transaction. May 26: Strategy confirmed that its cash reserves were used for bond buybacks, reducing the amount to approximately $871 million, enough to cover only about 6 months of STRC dividend payments, whereas the company's previous goal was to maintain coverage for about 24 months. June 1: Strategy sold 32 BTC of Bitcoin for the first time since 2022, demonstrating its ability to support dividend payments through asset sales. Following the announcement, MSTR's stock price fell 5.9%. June 5: Bitcoin fell below $60,000, and STRC fell to around $90. June 8: Strategy shareholders approved STRC to pay dividends twice a month, and the company disclosed that its dollar reserves had rebounded to $1 billion. June 15: Strategy purchased another 1,587 BTC, bringing its dollar reserves to $1.1 billion. June 18: STRC fell below $83 during trading, approximately 17% lower than its target price, hitting a new low since its listing in July 2025, and ultimately closed at $88.59. Analysts believe that STRC's core challenge lies in its high-yield preferred stock structure being highly tied to the Bitcoin cycle. In a Bitcoin bear market, investors are not only reassessing BTC itself but also re-examining the financial products and capital systems built around Bitcoin.