Crypto Scenario Insights
What happened
MicroStrategy's perpetual preferred stock (STRC) recently slipped nearly 17% below its par value, driving its effective yield to 13% and highlighting structural vulnerabilities.
What we think
The most likely outcome is that STRC trades at a moderate discount ($90–$95) with a 55% probability, as MicroStrategy relies on its $1 billion cash reserve to service dividends without resorting to major Bitcoin sales.
Read the analysis
Can MicroStrategy Defend Its Preferred Stock Par Value Without Diluting Bitcoin Backing?
We explain what happened and what could follow. We do not forecast prices.