Strategy "BTC Perpetual Motion Machine" STRC falls below $100 par value, high-yield strategy failing?

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Author: Jae, PANews The $100 par value was once the cornerstone of Strategy's financing magic. This perpetual financing machine, built by Michael Saylor specifically for buying Bitcoin, has now stalled. On April 14, Strategy's perpetual preferred stock, STRC, fell below its $100 par value anchor on Nasdaq, hitting a low of $99.06. Trading volume plummeted to 47% of its normal level, and it continues to fluctuate in the discount zone. The financing efficiency of STRC directly determines whether Strategy can continue to increase its holdings. Once STRC falls below par value, it means the financing engine for this company to sweep up Bitcoin has temporarily shut down. As this global leader in DAT (Digital Asset Treasury) holding the most Bitcoin loses its most important capital-raising channel, the marginal buying support for the entire Bitcoin market has become precarious. STRC 11.5% High-Yield Lock-in: Strategy Builds a Perpetual Bitcoin-Buying Machine In July 2025, STRC was officially born, solving Saylor's pain point: continuously drawing blood from traditional capital markets to buy Bitcoin without diluting the voting rights of MSTR common stock. The original design intent of STRC was to control the trading price near the $100 par value, ensuring the company could continuously raise funds through "At-the-Market" (ATM) offerings. - If the price remains consistently below $100, the board raises dividends to attract investors seeking stable cash flow to support the price; - If the price is significantly higher than $100, the dividend is maintained or lowered to reduce financing costs. Starting from an initial 9% annualized dividend, STRC raised rates for seven consecutive months, reaching 11.5% as of now. An endless stream of investors entered for the stable high yield, keeping STRC firmly above par value for a long time, allowing Saylor to convert money from traditional markets into buying power in the Bitcoin market through the ATM program. In addition, Saylor abandoned the traditional capital market's net profit valuation model and instead adopted the "Bitcoin Yield" metric to define the value of Strategy as a "Bitcoin-standard" enterprise. This metric measures the percentage growth in Bitcoin holdings per share of common stock. In the first quarter of 2026, Strategy achieved a 6.2% Bitcoin yield, with an annual target as high as 9.5%. STRC is the leverage tool to achieve this goal: by issuing preferred stock with fixed financing costs to buy Bitcoin, which has long-term appreciation potential. According to Saylor's calculations, as long as Bitcoin's long-term annualized growth exceeds 2.05%, common shareholders will continue to benefit. Over the past half-year, this logic has repeated in a cycle: issue STRC to raise funds → buy Bitcoin → Bitcoin price rises → stock market value rises → STRC becomes more sought after → raise more money to buy more Bitcoin. STRC is like a perpetual money-printing machine, delivering a steady stream of ammunition for Saylor's Bitcoin empire. STRC Falls Below $100 Anchor, Strategy Deploys "Bi-weekly Dividend" Tactic The $100 par value is the lifeblood of STRC's entire financing flywheel. Once it falls below this, ATM offerings will stall, and the money-printing machine will stop turning. This de-pegging is a double blow of macroeconomic headwinds and worsening expectations. The Iran war became the first straw that broke the camel's back for STRC. Disrupted shipping in the Strait of Hormuz caused crude oil prices to soar, igniting inflation fears and pushing market expectations for Fed rate cuts from mid-2026 to 2027. For a preferred stock like STRC with strong bond-like attributes, the long-term high in benchmark interest rates means its 11.5% dividend appeal is being diluted by the rise in risk-free rates. At the same time, the Crypto Fear & Greed Index once fell to 9, in a state of "Extreme Fear." Funds that were originally chasing stable returns began to sell off non-core assets, and the relatively low-liquidity STRC bore the brunt. If the macroeconomic environment was the external trigger, the dividend decision on April 1 was the needle that popped the bubble. On this day, Strategy announced that it would maintain the 11.5% dividend but terminate the seven-month streak of monthly rate hikes. PANews believes the company's intention was to convey confidence to the market: interest rates have reached a steady state, and the price is close to parity. However, in the eyes of investors, this move was misinterpreted as: the company'

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