Strategy's STRC Stuck in Perilous Parity Limbo

Strategy, Michael Saylor's Bitcoin holding company, has seen its shares plummet by 73% since July of last year. However, a more pressing issue is the performance of STRC, one of Strategy's dividend instruments. Despite paying twice-monthly dividends on $100/share of par value, STRC fell from parity on May 15 and has yet to recover.

Strategy's founder and executive chairman, Michael Saylor, made promises that no BTC would be sold, but the company has actually sold almost 7,000 BTC worth nearly half a billion US dollars since June. These sales were used to prop up Strategy's dollar reserves so it could ensure dividends to its preferred share holders.

Although these sales raised STRC from $75/share in June, they haven't been enough to take the instrument back to $100/share. Despite assurances from Saylor and Phong Le 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.