Strategy's Parity Problem Persists Amid Bitcoin Sales

Strategy, a company founded by Michael Saylor that holds a large amount of Bitcoin (BTC), has been struggling to maintain its preferred shares at parity. The STRC dividend instrument, which pays twice-monthly dividends on $100/share of par value, fell from parity on May 15 and has not returned.

Since July last year, Strategy's shares have plummeted by 73%. To prop up the company's dollar reserves and ensure dividends to its preferred share holders, it sold nearly half a billion US dollars worth of BTC since June. However, these sales have not been enough to bring STRC back to $100/share.

Phong Le and Saylor assured investors that Strategy had the means and intention to take STRC back to parity during the second quarter earnings call. However, despite their promises, STRC remains 5% below parity three weeks later.