BroadChain News, April 28 - STRC is a perpetual preferred stock launched by Strategy (formerly MicroStrategy), with a face value of $100, maintaining price stability through monthly floating dividends. As of March 31, STRC's nominal scale reached $5 billion, with peak daily trading volume exceeding $300 million, providing over $3.5 billion in Bitcoin purchasing funds for Strategy. Strategy currently holds 780,897 BTC, with a leverage ratio of 33%, and STRC's remaining ATM issuance capacity is approximately $21.6 billion.
STRC's core mechanism converts fixed-income demand into Bitcoin buying pressure. When STRC trades near $100, Saylor issues new shares via ATM (accounting for about 40% of daily trading volume), uses the proceeds to purchase BTC, and then issues MSTR common stock at a premium above NAV to deleverage. The net effect is that $100 million in daily STRC trading volume can drive approximately $120 million in BTC purchases.
However, the fragility of this flywheel lies in its cyclical nature: STRC's peg to $100 exists only because investors believe it can be maintained, and Saylor sustains this confidence by continuously raising dividends. This peg relies on confidence rather than collateral, maintained through informal, uncapped, ongoing dividend auctions. Once confidence breaks, auction costs will rise sharply.
STRC offers an 11.5% floating yield with relatively low price volatility in a bull market, but its risk structure is essentially equivalent to "selling a put option on Bitcoin asset coverage." When BTC declines, it cannot truly replace traditional fixed-income products. STRC's real vulnerability lies not in BTC price but in mNAV. If MSTR's mNAV remains below 1.0x for four consecutive weeks, the flywheel will enter a passive downward spiral within three months.
We estimate a roughly 70% probability of this mechanism being triggered in the second half of 2026, at which point STRC will present a buyable entry point in the $85-90 range. If not triggered, it would mean Saylor has successfully created a new category of BTC-native credit instruments. The dividend suspension in April is not a warning signal but rather a sign of yield stabilization after early price discovery for a mature tool, similar to how high-yield bond ETFs gradually reprice as institutional adoption increases.