Analysts warn Strategy must rebuild USD reserves to cover 24 months of dividends as STRC hits a record low of $79.85.
CryptoQuant advised Strategy to immediately stop buying Bitcoin and prioritize cash reserves to ease pressure on its preferred stock, STRC. The firm’s USD reserve should cover at least 24 months of dividend payments, according to the note.
STRC fell to a record low of $79.85 on Wednesday, trading below its $100 par value for a month. Bitcoin also dropped 4% to $59,175 before recovering slightly to $59,632. Rising costs tied to Strategy’s preferred stock have raised sustainability concerns.
Analysts suggest the move aims to restore confidence in Strategy’s digital credit model amid waning investor trust.