Strategy’s $12B Bitcoin Loss Pressures STRC Traders

Strategy holds 847,363 Bitcoin acquired for $64.1 billion at an average price of $75,651, a position now worth about $52 billion as Bitcoin trades near $60,000–$62,000. That gap leaves the company’s holdings roughly $12 billion below their purchase cost.

Strategy’s common stock has fallen below $100, its lowest level in about two years. The company’s capital-raising approach relied on a premium in its share price to issue equity and expand its Bitcoin treasury; with both Bitcoin and the stock weaker, that channel has narrowed and financing has become more expensive.

The company’s STRC preferred shares were created to trade near a $100 stated amount and currently pay an annual dividend of $11.50, equal to 11.5% of the stated value. At a market price around $81, that payment represents an effective yield of about 14.2% for a new buyer if the dividend rate is unchanged. Strategy has about $10.5 billion of STRC outstanding, so any increase in the dividend rate would materially raise recurring cash obligations.

Options activity around STRC shows elevated positioning in both directions. Total options volume recently reached roughly 10,400 contracts, about 167% of the average daily volume, and the put-call ratio was 1.35. Open interest is concentrated in calls at the $95 strike (9,432 contracts), $100 (5,518) and $90 (2,536), and in puts at $90 (1,533), $85 (1,976) and $60 (2,994). A $60 strike would put STRC about 40% below its stated amount and would raise the effective yield above 19% if the dividend remained the same. The open-interest data do not indicate whether positions are purchases, written options, or parts of multi-leg hedges.

To add liquidity, Strategy raised about $335.5 million through common-stock sales and used roughly $34.9 million of that to buy 520 additional Bitcoin, lifting its dollar reserve to about $1.4 billion. The company also sold 32 Bitcoin for approximately $2.5 million last month, saying the proceeds would help fund STRC distributions; that was its first net Bitcoin disposal since 2022.

Market participants offered differing recommendations on next steps. Ki Young Ju, chief executive of CryptoQuant, urged a disciplined framework for partial sales at cycle highs to deleverage and build cash for re-accumulation. Another market participant suggested STRC might find a base as shares shift toward investors willing to accept higher yield and volatility and that clarifying how preferred shareholders would be treated if dividends were suspended, or allowing an exchange into Bitcoin, could affect investor demand while introducing redemption risk. Joe Burnett, vice president of Bitcoin Strategy at Strive, pointed to the absence of a redemption feature in STRC as a structural difference from past crypto failures where holders could demand redemptions. Charles Edwards, founder of Capriole Investments, recommended lowering debt and preferred-stock liabilities and building income streams unrelated to Bitcoin price appreciation, such as lending, settlement services, or acquiring digital-asset treasuries at discounts.

At current prices, Strategy’s Bitcoin holdings exceed $50 billion and the firm has about $1.4 billion in cash reserves. STRC holders cannot immediately redeem shares for the underlying Bitcoin. A prolonged Bitcoin decline would raise financing costs and leave the company with a narrower set of choices: increase the STRC dividend and raise cash outflows, issue common stock at weaker prices, cut Bitcoin purchases, or sell more of the treasury to meet obligations.