Author: André Beganski; Compiler: Vernacular Blockchain

Decryption pointed out that Strategy Announcement The flagship preferred stock faced significant selling pressure on Thursday, and after the company that continued to buy Bitcoin reaffirmed that it would continue to pay Stretch (STRC) shareholders, the share price fell to a record low.

At press time, STRC fell 2.6% to $87.45, rebounding from the day's expected low of $82.53.

Although Tonight's preferred stock hasn't returned to $100 par value since mid-May, the product's performance itself is cyclical: There's usually a pullback in price after STRC's ex-dividend date.

The so-called ex-dividend date is the day on which investors who buy the strategy's flagship preferred stock will no longer take advantage of the upcoming distribution. By the end of this month, as STRC's next dividend payment date approaches, the companyexpects to have distributed approximately $100 millionto investors.

James Butterfill, head of research at CoinShares, told Decrypt: "STRC's continued weakness appears to be driven less by Bitcoin itself than by the market's uncertainty about how strategies will fund and manage their growing fixed obligations. A rebound in Bitcoin will increase the value of the assets underpinning the strategy, but it will not automatically increase its disposable cash."

Last year, cash reserves were established to manage debt and distribute dividends. At the beginning of the year, the company initially prepared US$2.25 billion; however, after repurchasing part of the debt at a discount, the current cash reserve has been adjusted to US$1.1 billion.

STRC is designed to trade around a face value of $100. Strategy has said that when the preferred stock trades below this level for an extended period, the companycan stimulate demandby raising Easter rates. Theinterest rate has remained at about 11.5%for the past four consecutive months.

Mark Palmer, managing director and senior research analyst at Benchmark-StoneX, told Decrypt that for this reason, STRC’s increased weakness is a mechanical result and a signal that the company is in trouble. He said that when the Caterpillar rate of a product is actually lower than the market level, its price will gradually move downwards.

Palmer said: "This structure is working exactly as designed. At current price levels, we believe STRC provides investors with a supported total return opportunity: on the one hand, current gains, and on the other hand, there is a built-in mechanism that will drive prices back toward par."

He added that analysts at Benchmark-StoneX expect the strategy to increase STRC's rebound rate in early July, "We expect this stage to support its price back toward par with the pound."

As STRC fell, Strategy’s common stocks also came under pressure. The company's stock price fell to a low of $109.36 on Thursday, a four-month low. In the past month, its stock price has fallen by 32%, a decline that exceeds the decline in similar Bitcoin prices.

Last month, this trend deepened. Tysons Corner, Virginia-based Strategydecided to sell 32 Bitcoins to cash out $2.5 million. The company has previously signaled this move, which is intended to send a message: No matter what method is used, itwill be able to fulfill its commitment to pay distributions to preferred shareholders.

Butterfill said: "Previously, the core narrative of the market has been the strategy of continuing to accumulate Bitcoin by issuing capital. Positioning only to sell a part to meet the allocation task also means that the flow of funds is reset and makes the overall strategy more complicated. This impact is only temporary."

This sale has also raised questions in the market: Will the listed company that holds the largest number of Bitcoins in the world further reduce its holdings in the future? On Wednesday, Strategy posted a response on

The company said: "With our BTC reserves, we have 32 years of liability coverage." This statement is based on its approximately $55 billion in BTC reserves versus annual liability and interest expenses of approximately $1.7 billion.

Taproot Wizards CEO Udi Wertheimer continued to point out on

Bitcoin fell below $62,500 on Thursday, down more than 5% on the day, according to CoinGecko data. At this price, the strategy's holdings of 846,842 BTC are worth a total of approximately $53 billion. Even so, analysts still believe that the current pressure is still agrowing pain, not a fatal flaw.

Butterfill said: "At this stage, I don't think this is a matter of life and death. This shows that the strategic financing model is becoming less efficient, and investors require higher returns before they are willing to bear this part of the risk."