Strategy STRC Price Drop Below $99 Raises Concerns Over Bitcoin Treasury Stability

Strategy’s perpetual preferred security STRC slipped to $97.11 before closing near $98.57, breaking below its intended $100 target level. The move comes as Bitcoin trades around the $73,000 range, adding pressure to securities tied to the company’s crypto-backed capital structure. The slip has raised questions about Strategy’s ability to maintain stable pricing while continuing to use STRC as a fundraising tool through at-the-market issuance.

Cash Reserves and Dividend Coverage Pressure Strategy Balance Sheet

Following a $1.5 billion repurchase of convertible senior notes, Strategy’s cash reserves dropped sharply to about $871 million. The company now faces roughly $1.7 billion in annual preferred dividend obligations, leaving only around six months of coverage. This reduction has intensified market focus on how the firm will manage liquidity while maintaining its Bitcoin heavy treasury model.

Strive SATA Preferred Security Gains Investor Confidence

In contrast, Strive Asset Management’s perpetual preferred security SATA has remained near its $100 par value, supported by a roughly 13% yield and plans for daily dividend payments. Over the past three months, Strive shares have significantly outperformed Strategy, reflecting investor preference for stronger balance sheets and more stable income structures.