Strive's SATA preferred shares recover to near $100 par value after June selloff, reflecting regained confidence in Bitcoin treasury strategies, with potential positive impact on similar products like Strategy's STRC.
Corporate Bitcoin holdings, often financed by convertible notes and preferred shares, face maturity and dividend pressures that can force companies like Strategy and Bitdeer to sell BTC, impacting market supply regardless of long-term price beliefs.
Bitcoin's price declined to $58,188, marking a 3.3% drop in 24 hours, amid a broader crypto market liquidation exceeding $1.44 billion. Strategy's preferred stock (STRC) also hit a record low, falling 8% to $74.13, as concerns grow over the company's cash reserves and Bitcoin holdings.
Bitcoin-linked digital-credit products, designed for income, experienced significant volatility and price drops due to leveraged investors facing margin calls. Issuers like Strategy and Strive saw their preferred shares slide, highlighting risks in the nascent market.
Metaplanet posts a $725 million Q1 loss due to declining Bitcoin holdings value, despite a 14.5% increase in Bitcoin stockpile to 40,177 BTC, now the 3rd largest corporate holder. Revenue from Bitcoin options contracts surged to $15.8 million.
The 21Shares exchange-traded note gives U.K. investors exposure to preferred shares of top Bitcoin treasury firm, Strategy.
