Strategy, the bitcoin-holding company tied to Michael Saylor, remains under pressure as it struggles to bring its STRC dividend instrument back to par, according to Protos. The publication said Strategy’s shares have fallen 73% since July of last year, while STRC slipped below parity on May 15 and has not returned to its $100 par value since then.
STRC pays dividends twice a month on $100 a share of par value. Protos said the instrument has now spent nearly 100 days below par, turning the gap into a persistent issue for the company.
BTC sales and STRC buybacks have not restored parity
Protos reported that although Strategy founder and executive chairman Michael Saylor had made vague promises that no BTC would be sold, he later clarified that he was referring to his personal holdings rather than the BTC owned by Strategy. Since June, the company has sold nearly 7,000 BTC worth close to $500 million.
According to the report, those sales were used to support Strategy’s dollar reserves so the company could ensure dividend payments to its preferred shareholders. Strategy has also repurchased STRC. Protos said those steps helped lift STRC after it briefly fell to $75 a share in June, but they still were not enough to push the instrument back to $100.
Management said it had the means and intent
The report said Phong Le and Saylor both told investors on the second-quarter earnings call that Strategy had the means and the intention to do whatever it took to return STRC to parity.
Protos argued that the company has not delivered on that assurance. Three weeks after those comments, STRC was still 5% below par, the outlet said.
Report also points to Saylor’s recent AI video posts
Protos also highlighted Saylor’s social media activity following what it described as an awkward earnings call and a period in which investors questioned management’s commitment to Strategy’s share price. The outlet said Saylor has been posting and reposting a series of AI-generated videos.
Among the examples cited were a clip of Saylor singing about Strategy using leverage to buy BTC and multiple videos showing him in Japanese settings, speaking Japanese and discussing the importance of BTC. Protos said none of that explains the problems tied to the company’s dividend instruments.
Protos said it will continue to follow developments around Strategy and STRC, especially whether the company is eventually able to bring the preferred shares back to par.