STRC Suffers Severe De-pegging, Panic Spreads in Markets
Jiang Zuo'er, founder of LakeBTC mining pool, recently posted that MicroStrategy's preference shares (STRC) have experienced a significant de-pegging event, with the price falling to a low of 73 USD. This sharp decline reflects the growing panic sentiment in U.S. equity markets toward Bitcoin. As one of the largest corporate holders of Bitcoin, MicroStrategy's stock and preference share performance are often viewed as a bellwether for the crypto market.
MSTR's Bitcoin Buying Strategy Shifts: Third-Week Data Reveals Bearish Signal
Jiang provided a detailed breakdown of MSTR's capital-raising and Bitcoin purchases over the past three weeks. During the first two weeks, MicroStrategy raised funds by issuing common shares and then used half of the proceeds to buy Bitcoin, accumulating approximately 1,500 BTC. However, in the third week, the volume of share sales doubled while BTC purchases plummeted to just 520 BTC. Moreover, the company retained most of the raised capital to pay dividends on its STRC preference shares. Jiang argues that this pattern—more share sales, fewer BTC buys, and reserving cash for dividends—is a clear bearish signal from the company.
He further predicts that MicroStrategy's Bitcoin purchases will likely drop sharply in the coming months, possibly ceasing altogether, as the company redirects funds toward paying STRC dividends. This suggests that management may no longer be optimistic about Bitcoin's short-term prospects and is prioritizing returns for preference shareholders.
Preference Share Nature and Low Debt Ratio: Only a Decade-Long Bear Market Could Trigger a Default
Despite the cooling enthusiasm for buying Bitcoin, Jiang emphasizes that STRC is a preference share, not debt. The company is only required to pay dividends and has no obligation to repay the principal. Currently, MicroStrategy's overall debt ratio stands at just about 10%, indicating a relatively healthy financial structure. Unless a Bitcoin bear market lasts for a full decade—meaning prolonged low prices with no alternative financing—Jiang believes there is no risk of a blow-up for MSTR. While this perspective provides some rational grounding, the de-pegging of STRC still underscores deep investor anxiety over Bitcoin's outlook.