MicroStrategy’s STRC Preferred Shares De-Peg Sharply, Lebit Mining Pool Founder Says

MicroStrategy’s preferred shares STRC saw a sharp de-pegging, briefly falling to 73, which Lebit Mining Pool founder Jiang Zhuoer said reflects fear toward Bitcoin among U.S. stock market capital. According to Foresight News, Jiang said MicroStrategy (MSTR) has raised funds for three consecutive weeks by issuing additional common shares. He said that in the first two weeks, the company used half of the proceeds to buy 1,500 BTC, while in the third week it doubled the volume of share sales but reduced Bitcoin purchases to 520 BTC, retaining most funds to pay STRC dividends. Jiang said this was a clear signal that the company is pessimistic about the market outlook. Jiang said MicroStrategy’s Bitcoin purchases are expected to decline significantly in the coming months and could even stop, with funds instead used to pay STRC dividends. He added that STRC is preferred equity rather than debt, meaning the company only needs to pay dividends and does not need to repay principal. He also said MicroStrategy’s debt ratio is currently about 10% and argued that the company does not face a risk of collapse unless a Bitcoin bear market lasts for 10 years.