Strategy Just Hit Rock Bottom! Will Saylor Sell Bitcoin to Save It? | Simply SatoSHE

**SPEAKER_1** (0:00)
Strategy's preferred stock just hit its lowest price ever.

**SPEAKER_2** (0:03)
No!

**SPEAKER_1** (0:04)
$82.53 this morning, down 15% in two weeks. The par value, the price it's supposed to trade around, is $100.
That's not a rounding error, but a 17-point gap on a product that was sold to investors as stable, low-volatility income. And right now, the same time that the price cratered, Strategy, dropped this post on X. The kind of post that's meant to calm people down. It's said they have 32 years of dividend coverage through their Bitcoin reserves. That Bitcoin only needs to appreciate 3.1% a year for everything to work out fine. On paper, it should have been reassuring. It wasn't. And here's what nobody is connecting to the story. A detail that got buried in price panic. A detail about how this product was built in the first place. I have the receipts because when you find out what I found out about the process behind the financial engineering that the world's largest corporate Bitcoin holder is now prepared to sell Bitcoin to protect, the question changes entirely. It's not, is this a death spiral? The real question is, should you have trusted this product to begin with? Welcome back to Satoshi. Let's get into it.
Before we get started, smash the like button, share the show with your friends and subscribe to our channel if you want to support the show. Now, let's get started with the facts on the ground. STRC is Strategies' preferred stock. That's Michael Saylor's company, formerly known as MicroStrategy. It's not Bitcoin. It's not MSCR shares. It's a financial product that pays an 11.5% annual dividend with a par value of $100 per share. The pitch was simple. Steady, low volatility income backed by the company holding more Bitcoin than any corporation on earth. For most of its life, it delivered. STRC spent the last several months trading in the 99 to $100 range, and it barely moved. It was almost like a stable coin, which, as we'll get into it, is kind of the problem. This morning, it dropped to $82.53, the lowest price ever. It's since bounced to around $86, but we're still talking about a product that's sitting 14 points below where it's supposed to be. And then, Strategy did something that made this worse before it made it better. They posted, and this is their official company post, that they have 32 years of dividend coverage through their Bitcoin reserves, that they hold $55 billion in Bitcoin, that annual dividends and interest obligations on STRC total $1.7 billion, that even without Bitcoin appreciating a single dollar, they can cover that for over three decades. According to their AK filed June 15th, Bitcoin only needs to compound at about 3.1% annually for Strategy to service those obligations indefinitely. The math is fine. I want to be clear about that up front. The math is not the problem. The problem is the second thing that this post implies, which is that if they need to, they will sell Bitcoin to protect this product. And the man who has said publicly, repeatedly, that Strategy would never sell Bitcoin is now walking that back. There are clips all over the internet. He said it multiple times. And now Strategy is saying, well, we could sell all of it if we had to. That's the subtext of this post. And honestly, the market read it exactly in that way. Now, Jesse Meyers, Croesus BTC, head of Bitcoin Strategy at SmarterWeb and one of the most rigorous thinkers in this space posted a thorough breakdown today. His read is, this isn't a fundamental collapse, it's a liquidation cascade. Here's the thing, STRC spent months trading in the 99 to $100 range. That predictability invited leverage. If you expect something to always stay above $95, you can borrow against it at 20X and dramatically juice your yield. Lots of people did. Then, the price dipped. Margin calls triggered. Forced selling pushed it lower, which triggered more margin calls. Classic cascade. And Jesse says opportunistic short selling hedge funds may have spotted the set up and accelerated it. His conclusion is the market will heal itself. Hedge funds will recognize it's a fire sale when the fundamentals are unchanged, step in as buyers and the shorts become buyers on the way back up. Buyers right now are getting roughly 13.7% effective yield. If STRC trades back to $100, which Jesse expects within weeks, that's an 18% return. Jesse also says STRC will likely raise the dividend rate on June 30th, possibly to 11.75% or maybe even 12%.
We don't know. Making current buyers' effective yield even higher at around 14.2%.
So the math looks like a stress test, not necessarily a catastrophe. But here's where I need you to stay with me because there is a layer to this story that isn't about the math at all.