According to MarsBit’s market analysis, STRC preferred shares fell sharply to a record low of $85.32, with the discount widening to more than 17%. The move put pressure on the closed-loop structure associated with Saylor, a structure described in the source as relying on Bitcoin price appreciation and continuous issuance-based financing.
That loop has shown signs of breaking down in a bear-market setting. The input notes that Bitcoin has been cut in half, while dividend coverage has dropped sharply. This led to the first sale of coins to pay interest, marking a shift away from a system that depended on rising Bitcoin holdings and ongoing financing to keep the structure operating.
The pressure was compounded by SATA, a competing product that diverted capital. Together, the Bitcoin decline, the fall in dividend coverage, and the diversion of funds created what MarsBit described as a reverse flywheel. STRC’s price decline, wider discount, and weaker financing appeal have shaken market confidence in the sustainability of the “Bitcoin treasury company” financing model.