MicroStrategy Preferred Stock Decouples, Highlighting Market Panic
Jiang Zhuoer, founder of the BTC.TOP mining pool, posted on social media that MicroStrategy's preferred stock STRC has experienced a severe decoupling, falling to as low as 73 USD – a significant discount from its face value. This movement reflects growing panic among US equity market participants towards Bitcoin. As the publicly traded company with the largest Bitcoin holdings, MicroStrategy's market performance is closely tied to crypto market sentiment, and the abnormal fluctuation in its preferred stock is viewed as a risk signal.
Jiang Zhuoer: MSTR Slows Bitcoin Purchases, Shifts to Dividend Payments
Jiang further analyzed MSTR's recent capital operations. The company has raised funds through common stock offerings for three consecutive weeks. In the first two weeks, it used half of the proceeds to purchase 1,500 BTC. However, in the third week, despite doubling the amount of stock sold, its Bitcoin purchases fell sharply to only 520 BTC, and the majority of the funds were retained to pay dividends on STRC. Jiang interprets this as a clear signal that the company holds a pessimistic view of the market outlook. He predicts that MSTR's Bitcoin purchases will decrease significantly in the coming months, and the company may even halt purchases entirely, redirecting capital to pay STRC dividends.
Addressing concerns about MicroStrategy's potential "meltdown," Jiang emphasized that STRC is a preferred stock, not debt. The company is only obligated to pay dividends and is not required to repay principal. MSTR's current leverage ratio is only about 10%, indicating extremely low financial risk. Unless a Bitcoin bear market lasts more than a decade, MSTR faces no risk of default. This analysis provides a different perspective for investors worried about MicroStrategy's financial health.