Strategy Sets $13,400 Bitcoin Floor for STRC Preferred Stock

Strategy has published a $13,400 Bitcoin price floor for its STRC preferred stock, defined as the price at which the company’s illustrative coverage ratio reaches 1.0x, according to analysis by CryptoSlate. The metric provides no claim on Strategy’s Bitcoin reserves and carries no solvency or recovery guarantee.

The floor reflects a snapshot calculation anchored to Strategy’s current debt structure. The company holds $6.714 billion in debt, offset by $6.69 billion in USD assets, plus $1.284 billion of senior STRF and $9.972 billion in notional STRC value. At the Aug. 30 research pass price of $78,440.50 per Bitcoin, Strategy’s projected coverage ratio stood at 5.84x, well above the 1.0x threshold.

Strategy held 840,447 Bitcoin as of the analysis date, valued at $64.718 billion at the $77,004 price point used in the latest dashboard snapshot. On Aug. 21, STRC closed at $96.18 and offered a 12.48% effective yield. By Aug. 28, STRC had risen to $97.33, with an effective yield of 12.33% and a $12 annualized dividend.

Structural Constraints on the Floor

The $13,400 floor assumes full deployment of Strategy’s current asset base. Cash use and counted claims can move the threshold materially before Bitcoin approaches the modeled floor, according to the analysis. If Strategy depleted its USD cash reserves, the modeled floor would rise to $15,313. If all USD assets were exhausted, the floor would climb to $21,381.

In an actual restructuring, creditors and subsidiary liabilities rank ahead of STRC. Junior preferred and MSTR common stock rank behind it. The $5.10 billion USD Reserve is designated by board policy for preferred dividends and debt interest. Neither this reserve nor Strategy’s USD cash pool is pledged to STRC holders.

Recent Capital Activity

Strategy sold 18,261,118 MSTR shares for $2.0065 billion in the latest disclosed week, funding operations without Bitcoin sales. The company allocated $136.4 million to STRC repurchases, retiring 1,431,212 shares. Strategy added $300 million to its USD Reserve and maintains $1 billion in remaining MSTR repurchase authority and $516.6 million in preferred repurchase authority.

STRC cash dividends require board declaration and legally available funds. Missed installments accumulate and compound. Strategy’s $1.59 billion USD cash pool and $5.10 billion designated reserve support ongoing dividend and debt service obligations, but neither is contractually pledged as collateral for preferred equity.