Michael Saylor noted the strategy’s shift from its 2022 lows, saying the company’s Bitcoin (BTC) and cash reserves now exceed its debt by about $48 billion. His comments come as MicroStrategy preferred STRC shares are trading well below their $100 target.
Saylor has been celebrating his win for several years, but traders are wondering whether his latest Bitcoin financing tool can stick.
How the strategy came back from the 2022 lows
In October 2022, the company then called MicroStrategy (MSTR) owned about 130,000 bitcoins. Weeks later, as well FTX breakdown After leading bitcoin below $16,000, Saylor says its debt briefly outpaced bitcoin and cash by about $300 million.
Adjusted for a 10-for-1 split in 2024, the stock traded near $13. Michael Saylor says the picture has changed since then.
MicroStrategy has raised over $60 billion, and now it has done so He carries About 843,700 bitcoins, more than any other public company. He cast the apostasy as evidence that the conviction had paid off.
“When I gave this speech in October 2022, Bitcoin was trading at close to $20,000…Today, Bitcoin and US dollar reserves exceed debt by about $48 billion. Thank you to everyone who believed, endured, and took a long-term view,” books In a job.
Follow us on XTo get the latest news as it happens
Why STRC fell below its $100 target
STRC, officially Variable Rate A Preferred Stock, is created to trade near $100, and the strategy resets earnings monthly to defend that level. The company has Raise the rate again and againNow to 11.5%
Own strategy filings Note: STRC is not collateralized by Bitcoin and only holds a preferred claim on the remaining assets. This makes it a credit product, not a proxy for Bitcoin.
The arrow did not cooperate. It recently traded in the high $80s It dropped to less than $100 floor during the sales process.
with Bitcoin price is approaching $63,700De-leveraging and issuance pauses drove the decline. MicroStrategy can only sell new STRC at or above the price, so a deep discount cripples its Bitcoin buying machine.
Conviction faces a real stress test
Supporters remain calm. Michael van de Poppe, founder of MN Capital, said STRC cannot break this cycle unless bitcoin collapses toward $10,000, and he expects it to return to near parity within a week.
Others see the messaging problem as a structural problem.
Cryptocurrency analyst James Van Straaten said panic misread what STRC was, noting that Retail investors own most Of the shares, about 80% by one count.
“$STRC is not a stablecoin, and it does not ‘unlink’. …The problem was with (Saylor’s) messages. “You can’t expect a ‘penny of volatility’ when the underlying asset is a 40-50 sized asset and the majority of holders are retail,” the analyst said. male.
Selling concerns are nothing new. The strategy created the first ever Bitcoin sale In the same 2022 window, he sold 704 bitcoins for a tax benefit before buying them back days later.
once again Sold 32 Bitcoin This year to help cover dividends, economist Peter Schiff has described the structure as a house of cards where STRC, MSTR and Bitcoin collapsed together.
Timing increases the intensity of the test. Contributors consent Transition to STRC’s bi-monthly dividend which takes effect at the end of June.
this post Michael Saylor touts $48B Bitcoin turnaround, but can MicroStrategy’s STRC survive 2026? appeared first on BeInCrypto.
