Bitwise CIO: STRC Selloff to $75 Reflects Bitcoin's End-of-Cycle Deleveraging

BTC5.25%
According to Bitwise CIO Matt Hougan, the sharp selloff in Strategy's STRC preferred stock is a "painful but necessary" part of crypto's current market cycle, reflecting the kind of end-of-cycle deleveraging that typically precedes a market bottom. STRC, Strategy's perpetual preferred equity instrument, fell to as low as $75 from its $100 par value launch price in late June, with an effective yield reaching 15.4%. On June 29, Strategy introduced a new framework to stop automatically raising STRC's interest rate and instead allow the stock to trade at variable prices, pledging to periodically sell bitcoin to fund dividend payments. Hougan noted Strategy holds $49.6 billion in bitcoin and $2.6 billion in cash against $6.8 billion in debt, enough to cover 28 years of dividend obligations.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments