Strategy CEO bets $1M on STRC recovery as preferred stock stays below par

Strategy CEO Phong Le invested $1 million in STRC preferred stock, saying he will hold until it returns to its $100 par value (likely longer). The move comes as STRC trades under par after a sharp sell-off that recently pushed the preferred shares below $83. After Le’s disclosure, STRC rose from session lows, gaining about 1.46% to roughly $89.2. Why it matters for STRC: STRC is central to Strategy’s Bitcoin acquisition model. When the preferred stock trades above $100 par, Strategy can issue additional shares via its at-the-market program and redirect proceeds to buy Bitcoin. Below par, that funding channel becomes less effective, increasing pressure on the dividend-and-liquidity outlook. Strategy’s latest filings also show liquidity management. The company said its U.S. dollar reserve increased to about $1.4 billion, and it sold 2.71 million MSTR shares for nearly $335.5 million to bolster funding. Management previously argued that Bitcoin and cash holdings exceed outstanding debt by roughly $48 billion. Still, critics remain focused on STRC sustainability. Peter Schiff, Jeff Dorman and Ali Martinez questioned legal/SEC-related exposure and the durability of dividend payments. QCP estimated available liquidity could cover preferred dividends for about 7.5 months. Dorman suggested Strategy might eventually need to sell $3–$4 billion of Bitcoin to relieve capital-structure stress. Analyst Ali Martinez drew comparisons to Terra’s LUNA-era dynamics. Meanwhile, Strategy continued buying Bitcoin (e.g., 520 BTC for about $35M), keeping STRC’s narrative tied to the broader Bitcoin reserve story.