Core Announcement
Investors observed Bitcoin trading at $60,302.7, up 1.90%, as the cryptocurrency remained above the $60,000 threshold on Saturday. The primary market focus was the upcoming June 30 ex‑dividend date for Strategy Inc’s (NASDAQ:MSTR) STRC perpetual preferred shares, when the monthly dividend rate will be reset. Shareholders holding STRC before the ex‑dividend date are entitled to a semi‑monthly dividend of $0.48 per share payable on July 15.
Preferred‑Share Pricing and Yield
STRC shares were quoted near $73, representing a discount of roughly 27% to the $100 par value. This discount translates to an effective dividend yield of approximately 15%, based on the current dividend rate of 11.5%. Some market participants anticipate that Strategy may increase the dividend rate to better align with the discounted market price.
Funding Model Scrutiny
The pronounced discount has reignited debate over Strategy’s capital‑raising approach, which relies on issuing preferred shares to fund additional Bitcoin purchases. Ripple Chief Executive Brad Garlinghouse, in a CNBC interview, described the model as “financial engineering” rather than a sustainable value‑creation strategy, citing the below‑par trading of STRC as evidence of waning investor confidence in the financing method. Garlinghouse emphasized that his criticism targeted the funding structure, not Bitcoin itself.
Bitcoin Holdings and Unrealized Losses
Strategy has accumulated approximately 844,000 Bitcoin at an average acquisition price of about $75,600 per coin. With Bitcoin price hovering near $60,240, the company’s unrealized paper loss exceeds $13 billion, according to data from BitcoinTreasuries. This loss surpasses the total market capitalisation of several prominent cryptocurrencies, including Dogecoin, Cardano, Chainlink, Litecoin, and Bitcoin Cash, underscoring the scale of Strategy’s leveraged exposure.
Analyst Perspectives
Some analysts suggest that Strategy should temporarily curb Bitcoin purchases and bolster its cash reserves, noting that the depressed preferred‑share price makes raising fresh capital more challenging. Other commentators argue that despite reduced efficiency, the financing model remains viable and that long‑term performance will hinge on Bitcoin’s price recovery rather than short‑term fluctuations in the preferred‑share market.
Broader Crypto Market Context
During the thin Saturday trading session, other major cryptocurrencies posted gains: Ether rose 3.02% to $1,584.49, XRP advanced 3.81%, BNB added 1.29%, Solana climbed 4.23%, Cardano increased 2.87%, Dogecoin rose 2.76%, and the meme coin TRUMP gained 0.60%. Traders continue to assess macroeconomic conditions, institutional demand, and developments surrounding large corporate holders such as Strategy.