Strategy has recently fallen to approximately $73, about 27 per cent below the nominal value of $100. The market is currently focused on two points of time on June 30th: the interest-free day and the resetting of monthly dividends.

The impact of interest-sharing is relatively limited.

As a rule, when equities enter interest-deprivation transactions, prices are usually adjusted to the dividends. In the case of STRC, the corresponding price adjustment this time is approximately US$ 0.48. The impact is less than 0.7 per cent, at a stock price around $73.

In contrast, the recent single-day fluctuations of STRC can range from 2 to 3 per cent. This means that a simple interest-cutting factor per se is not necessarily the main reason why stock prices continue to decline.

Markets are more concerned about the increase in dividends.

More concerned is the monthly dividends interest rate reset for STRC. STRC is a permanent priority unit with no maturity date and the level of dividends can be adjusted on a periodic basis.

Strategy has maintained its dividends at 11.50 per cent for four consecutive months. However, the real rate of return required by investors has risen significantly when STRC is long below the nominal value of the transaction.

  • One month, VWAP is about $91.46.
  • Current share price is about $73.
  • The real rate of return at market value is close to 15 per cent.

This has also led to a general expectation in the market that firms may increase their dividends from 11.50 per cent to at least 12 per cent or 12.50 per cent.

The restoration of space is still dependent on bitcoin

However, it was reported that even if Strategy had a small increase in the rate of dividends, whether the SRC would continue to rise to nominal value, the key remained in bitcoin.

At present, the price of the Strategy General Stock MSTR transaction is about $85, more than 84 per cent above the November 2024 high point. The continuing pressure on ordinary equity is also increasing market concerns about the capital structure of Strategy bitcoin leverage.

From a market perspective, the interest rate replacement on June 30 is more like a short-term response to the STRC pricing pressure than a fundamental factor in its long-term recovery.