Strategy's funding machine is breaking as its STRC preferred trades far below $100 par, threatening a death spiral. STRC pays about 11.5% and lets Strategy buy bitcoin only while near par; at a new low of about $82, issuance stops, yet cash dividends are still due. Cash has fallen from $2.25 billion to about $1 billion, and Strategy sold 32 BTC in late May to cover STRC obligations. Higher payouts mean more bitcoin sales, which hit bitcoin's price and confidence, pushing STRC lower again. x.com 

STRC, the preferred stock tied to Strategy, is a Ponzi-like structure that will be Strategy's downfall unless it is shut down. The structural problem cannot be fixed while it exists, and management's stubbornness risks a massive loss of confidence in Strategy. If Strategy sells bitcoin to cope, lower bitcoin prices could follow in a vicious cycle. As long as STRC exists, believers in bitcoin should just own bitcoin. x.com  x.com  x.com 

Strategy offers prime risk/reward here unless Bitcoin keeps moving deeply lower. Saylor affirmed the company can pay its dividend for over two years and will prioritize always holding 12 months of dividend cash, alongside a new Digital Credit Capital Framework. Last week's FUD over Saylor, Strategy and its STRC preferred produced a strong candle below the prior low into a key demand area from the previous cycle, yet the stock kept its weekly bullish divergence. x.com 

Strategy may be forced to sell bitcoin because its STRC preferred has hit a record low of $83, well under its $100 par. That discount says the dividend is too low, and raising it means more cash out the door. Strategy has funded that cash by selling MSTR shares, but the premium that made dilution easy is almost gone, leaving bitcoin sales as the remaining option. x.com 

Strategy is a disclosed Ponzi that is now unwinding, with much more downside ahead and an eventual path to zero. As bitcoin-treasury hype fades, raising money to keep the scheme going gets harder, while interest costs keep accumulating on instruments such as its STRC preferred. That liquidity drain is what will take Strategy down. x.com 

Raising Strategy's STRC rate could lock common shareholders into costly dividends after sentiment improves. STRC is six times SATA's size; each 0.5-point hike costs $43m a year on existing shares, without evidence it can sustain par. Buybacks have pushed STRC toward par; as Bitcoin rises and daily payouts start, it will return to par at 12%. Reversing a hike without serious backlash may be difficult for 5-10 years. x.com  x.com  x.com  x.com  x.com 

Strategy's STRC resembles FTX backing its books with its own tokens, and big Wall Street players are likely shorting STRC knowing Saylor will eventually have to sell bitcoin to fund the debts. That would ultimately ruin MSTR holders' trust. x.com 

Strategy is in the worst possible position, with Michael Saylor now down $13.7 billion, about 20%, on its bitcoin bet. STRC needs money to be rescued, and selling bitcoin to fund it would hurt both bitcoin and Strategy badly. Only a sudden sharp bitcoin rally looks able to save it. x.com 

Strategy is attracting some of the world's largest fund managers because they want Bitcoin exposure. Their buying supports the bullish case for MSTR as a listed vehicle for institutional Bitcoin demand. x.com 

Falling STRC prices raise its effective yield, increasing Strategy's dividend burden and tying the instrument to occasional Bitcoin sales despite its large holdings. Saylor is promoting STRC's 12% yield paid twice a month, and the higher it is, the faster Strategy sells Bitcoin. Replying to @Blockcastcc's report of Peter Schiff's warning that Bitcoin could fall toward $20,000, Strategy should sell everything and repay: preferred holders can be paid, but common holders would be wiped out. x.com  … Show more