Strategy's preferred stock, STRC, experienced significant volatility following a series of financial maneuvers involving its cash reserves and Bitcoin holdings. On May 26, the company confirmed it had used its cash reserve to finance a bond repurchase, reducing the fund to $871 million and covering only six months of STRC dividends, down from the planned 24 months. STRC traded at $99.33, while Bitcoin was around $77,000.
On June 1, Strategy sold 32 BTC, marking its first Bitcoin sale since 2022, to potentially fund dividend obligations. This sale, though minor at 0.0038% of its holdings, led to a 5.9% drop in its common stock (MSTR) and a Bitcoin price dip to $70,500. STRC closed at $98.07. By June 5, Bitcoin fell below $60,000, causing STRC to drop to $93.40. However, Strategy's subsequent Bitcoin purchases on June 8 and June 15, totaling 3,137 BTC, increased its dollar reserve to $1.1 billion, stabilizing its financial position.
Strategy's Preferred Stock Faces Volatility Amid Bitcoin Sales and Purchases
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