Bitcoin : The STRC slips below $99, doubts rise around Strategy

Bitcoin remains at the heart of Strategy’s model, but the fall of STRC below $99 shows that the market no longer only looks at its BTC reserves. It also watches its cash flow, dividends, and ability to sustain an increasingly demanding financial mechanism.

Bitcoin is no longer enough to reassure the market

STRC dropped to $97.11 before closing at $98.57. This move comes as Strategy is already reorganizing its cash and debt, which makes the market reaction more sensitive. At first glance, the drop seems limited. Yet it hits the core of the financial setup built around bitcoin.

STRC is not a mere secondary stock. It is a preferred share designed to stay close to $100. It allows Strategy to attract capital without directly selling its bitcoin. When this price slips, the signal becomes heavier than an ordinary market variation.

The problem is therefore clear. Bitcoin still gives Strategy an enormous symbolic strength. But it does not neutralize all questions. The market wants to know if the company can fund its commitments without weakening its balance sheet.

STRC exposes the financial side of the bitcoin bet

Strategy presents STRC as a perpetual preferred share with a variable dividend. In May 2026, its annualized rate stands at 11.50% on a reference value of $100. On paper, the yield attracts. In reality, the cash dividend is not guaranteed.

This nuance weighs heavily. Investors like the bitcoin story as a store of value. But they also demand cash, regular payments, and clear visibility. This is where Strategy’s model becomes more complex.

The company recently completed the repurchase of $1.5 billion of 2029 convertible notes for about $1.38 billion in cash. The operation reduces part of the debt but also reduces immediate wiggle room. Bitcoin remains reserved, but the available cash flow becomes the sore subject.

Strategy’s cash flow becomes the real test

According to CoinDesk, Strategy’s cash reserve reportedly fell to around $871 million. In contrast, the annual obligations linked to preferred dividends would be about $1.7 billion. This means that available coverage would represent only about six months.

This situation changes the market’s reading. Strategy is no longer judged only on the size of its bitcoin portfolio. It is judged on its ability to turn that story into a sustainable financial balance. Yet, a massive portfolio does not automatically pay dividends.

The company has several options. It can sell shares, issue more STRC, or use other financial instruments. It could also touch its bitcoin, but that would be a delicate choice. Because selling BTC would crack the very story that built its image among crypto investors.

Strive benefits from doubts around Strategy’s bitcoin model

While Strategy defends its balance, Strive draws attention with SATA, its own perpetual preferred share. The contrast is uncomfortable for Strategy. SATA has remained close to $100, with an announced annual yield of 13%.

Strive also promises to switch to dividends paid every business day from June 16, 2026. This detail speaks to the market. It gives an impression of regularity, almost simplicity. Conversely, Strategy looks like a more loaded, more sophisticated model, hence more vulnerable when confidence falls.

This does not mean Strategy is in immediate trouble. The company remains the largest corporate holder of bitcoin, with 843,738 BTC announced after its latest statement. This stock still gives it rare power. But below $99, the STRC reminds one thing: bitcoin can carry a story, not replace prudent cash management. The debate now fits into a broader reflection on companies putting bitcoin at the heart of their treasury.