Bitwise confirms STRC selloff signals crypto cycle nearing a bottom, not Strategy’s breaking point
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Asset manager Bitwise said the sharp decline in Strategy’s (MSTR) perpetual preferred stock, STRC, is a hallmark of a maturing crypto cycle rather than evidence of a looming crisis at the company.
Key facts
- Bitcoin’s recent pullback below $60,000 coincided with STRC breaking from its intended $100 par value, as investors questioned Strategy’s willingness to maintain preferred dividend payments
- Bitcoin was trading around $61,400 at publication time, STRC at $88
- While the selloff rattled markets, Bitwise argued Strategy remains fundamentally well-capitalized, with roughly $52 billion in liquid assets against about $7 billion of debt
- Its $2.55 billion cash balance currently covers about 17 months
Summary
Bitwise said STRC’s collapse is a classic late-cycle deleveraging event, not a sign of impending liquidation at Strategy. Strategy’s new framework shifts MSTR from a one-way bitcoin buyer to a more flexible capital allocator. The asset manager expects institutional investors, not Strategy, to become bitcoin’s dominant source of demand in the next cycle. Bitcoin’s recent pullback below $60,000 coincided with STRC breaking from its intended $100 par value, as investors questioned Strategy’s willingness to maintain preferred dividend payments.