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.

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.

Phong Le and Saylor, both assured investors that Strategy had the means and intention to do whatever it took to bring STRC to parity during the second quarter earnings call.

It appears the C-suite made promises it can’t keep.

Despite supposedly having the means, STRC remains 5% below parity three weeks after the C-suite made promises it seemingly can’t keep.

Since the awkward earnings call and investors questioning executive’s commitment to Strategy’s share price, Saylor has been non-stop posting and retweeting strange and absurd AI videos.

These include one where he’s singing about Strategy using leverage to purchase BTC, to numerous clips where he appears to be in random Japanese locales, speaking Japanese and talking about the importance of BTC.

Read more: No amount of cash can fix STRC’s trust problem

None of it makes sense, none of it explains the clumsy nature of Strategy’s dividend instruments, and, if anything, the rapid pace of the videos Saylor posts comes across as panic and fear in a down market.

Protos will stay abreast of the Strategy and STRC situation, particularly if it’s able to finally bring the preferred shares back to parity.

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