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Strategy's preferred security STRC has slid 26% below par as a sharp bitcoin selloff pushes MSTR shares to a 16-month low.
The twin moves apply simultaneous pressure to both tiers of a capital structure that has spent roughly a year recycling preferred-security proceeds into additional $BTC purchases.
Strategy's Preferred-to-Bitcoin Pipeline For the past year, Strategy has run a repeating loop: issue and tap preferred securities — STRC is one instrument in that stack — then deploy the raised capital into bitcoin.
The model bets that appreciation in $BTC will outpace the cost of maintaining the preferred paper.
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