Strategy's STRC preferred shares have hit a new all-time low this week, trading in the $73-78 range and extending a selloff that began in mid-June.
The preferred shares spent months trading near their $100 par value. On June 18, the stock was at $82.60. By Wednesday, STRC dropped to a fresh all-time low, with the price dropping another ~10% on Thursday. The total drawdown from par is approximately 25% in under two weeks.
Jesse Myers, head of Bitcoin Strategy at The Smarter Web Company, identified the selloff as a liquidation cascade rather than a change in fundamentals. His account: the stock's prolonged spell near par encouraged investors to buy on leverage, betting the price would remain above $95. When prices began to slip, hedge funds shorted aggressively, triggering margin calls and feeding a self-reinforcing decline.
"The price action today is a clear liquidation cascade," the analyst, who goes by Croesus_BTC on X, wrote, "rapidly pushing prices lower, in turn triggering additional liquidations."
Strategy's bitcoin reserve provides substantial runway for dividend payments. The company holds 847,363 BTC, per a June 22 update that also confirmed the company increased its USD Reserve to $1.4 billion. On the liability side, total debt and preferred obligations stand at roughly $8 billion.
