Strategy's STRC Funding Loop 'Gives Me the Shivers,' Says Analyst Worried About Saylor's Shrinking Window

STRC is a preferred-stock funding vehicle used to finance ongoing Bitcoin purchases. It is structured to trade near $100 per share using a variable monthly dividend rate tied to the stock’s VWAP. When STRC stays near par, Strategy can issue additional shares, raise capital, and buy more Bitcoin, increasing Bitcoin Per Share. The dividend rate has risen over time to help maintain the peg. Concern centers on how briefly STRC trades near $100 recently, which could reduce the time available to issue shares before ex-dividend dates. If market support weakens and STRC fails to remain near par, the ability to raise fresh capital may slow, potentially affecting the Bitcoin buying process.

"STRC, formally known as the Variable Rate Perpetual Stretch Preferred Stock, launched in July 2025 and raised roughly $2.5 billion in what became Strategy's largest IPO ever. The total stated amount has since grown to roughly $3.4 billion. The structure is designed to trade near $100 per share through a variable monthly dividend rate tied to the stock's VWAP. When STRC stays near par value, Strategy can continuously issue more shares into the market, raise capital, buy more Bitcoin, and increase what management calls Bitcoin Per Share."

"To maintain that peg, the dividend rate has steadily climbed. STRC started at 9.0% in mid-2025 before gradually rising through 10%, 10.5%, 11%, and now roughly 11.5%, according to Neuner. What worried him was how little time STRC recently spent at the critical $100 level. In February and March, STRC reportedly traded near par around the 25th of the prior month, giving Saylor multiple weeks to issue stock and raise capital."

"In May, Neuner said the window narrowed dramatically. "In May, the thing only got to 100 on the 11th of May, which gave him 4 days until the stock went ex-div to raise money," he said. His concern is that if the market stops supporting STRC near par, Strategy's ability to raise fresh capital could weaken. "Eventually t""

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