Bitcoin surged past the $77,125 threshold, but MicroStrategy took a move that countered the market trend. Throughout August, the company was forced to offload 1,690 BTC worth $108.6 million. This sale was not a profit-taking action, but rather an emergency measure to buy back approximately 1.15 million of their STRC preferred shares, which were trading at a discount on the open market.
The proceeds from the sale of the leading cryptocurrency asset were injected to stabilize the price of the STRC instrument at an average level of $94.29. Despite being supported by the capital injection, the preferred stock remains stagnant around $95.31. This value stays pinned below the $100 nominal price, untouched by the rally euphoria enjoyed by Bitcoin holders.
Capital Structure and Dividend Changes
The position of STRC sits in the capital structure hierarchy above MSTR common stock but still below the company’s debt class. These shares are designed to be perpetual, having no maturity date, and their holders are not equipped with cash redemption options.
When MicroStrategy first issued STRC in July 2025, its annual dividend offering was pegged at 9%. As the market price slid below $100, the company repeatedly raised this yield until it capped at 12%. In June 2026, management finally modified the policy by removing the automatic adjustment clause if the monthly average price fell below the $95 threshold. The company now prefers to peg the dividend at 12% until the STRC price recovers close to its nominal value.
30% Downside Risk
For market participants, that 12% figure is not yet attractive. Multicoin Capital founder, Tushar Jain, criticized this yield structure. Jain stated that the offered 12% annual dividend is too low to compensate for the historical downside risk of up to 30% looming over STRC investors.
An Arbitrage Engine Starting to Stall?
The price remaining below par value has secondary effects on MicroStrategy’s buying power in the market. The company is now hindered from issuing new STRC shares to purchase additional Bitcoin supply. The stagnation of capital flow from this channel has become a stumbling block for their Bitcoin acquisition strategy.
Looking at these conditions, Jain assesses that the MSTR digital treasury arbitrage trading scheme to Bitcoin has now reached a saturation point. He warned investors: if this accretive Bitcoin buying engine truly halts, MSTR stock risks falling and trading at a discount. This pattern mirrors the fate of closed-end funds when they lose their growth momentum in traditional exchanges.
As reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
