Bitwise attributes STRC’s decline to late-cycle deleveraging, expecting institutions to drive bitcoin demand as Strategy shifts its capital strategy.
Bitwise Asset Management said the selloff in Strategy’s (MSTR) perpetual preferred stock, STRC, reflects a maturing crypto cycle rather than a crisis at the company. STRC fell to $88 from its $100 par value as bitcoin dipped below $60,000, raising concerns over Strategy’s dividend commitments and leverage.
The firm noted Strategy remains well-capitalized, with $52 billion in liquid assets against $7 billion in debt. Bitwise’s CIO described the volatility as a natural part of the cycle, suggesting the market is nearing a bottom. Strategy’s new framework moves it from a bitcoin-focused buyer to a more flexible allocator.
Bitwise expects institutional investors to replace Strategy as the primary source of bitcoin demand in the next cycle. Bitcoin traded at $61,400 at publication, while STRC held at $88.