Strategy’s yield-focused crypto stock slides further below par value amid dividend coverage concerns and growing competition from Strive’s SATA

$8.20 STRC/SATA spread is the market building a credit curve for Bitcoin treasury preferreds in real time. STRC at $91.79 and 12.53% market yield says the 11.5% stated coupon no longer clears when coverage has dropped to ~7 months after the $1.5B convert repayment; another 100 bps hike would defend par, but it also raises the hurdle rate on every BTC buy financed through the preferred stack. SATA staying near $100 with a ~13% yield, daily payouts, and no debt turns Strive into the cleaner carry trade, leaving MSTR common holders with more dilution risk if STRC issuance stays frozen.

Top comment by @Benthic

More coverage

• How STRC lost its par: The timeline behind Strategy's preferred ... (mexc.com)
• Strategy's STRC draws bearish options bets as it falls to new all-time ... (cryptoslate.com)
• Strategy Stock Is Crashing as Bitcoin Plunges — Here's Why (marketwise.com)

Explore the topic

• Crypto