MicroStrategy STRC preferred shares tumble as Bitcoin slump hits valuation

MicroStrategy’s stock slipped below $100 for the first time in 2024 as a sharp 52% decline in Bitcoin’s price pressured the company’s treasury, which holds 847,363 Bitcoin units. The firm’s STRC perpetual‑preferred equity, marketed as a “digital credit,” fell to about $74.57, well under its $100 face value, prompting concerns about its pricing mechanism and dividend sustainability.

Separately, a family office sold 25% of its Micron (MU) holdings to purchase STRC shares, a move disclosed by Richard Byworth of Syz Capital. The transaction sparked criticism on social media, with opponents questioning the decision to shift from a high‑performing semiconductor stock to a sharply declining financial instrument. Byworth defended the shift as a long‑term Bitcoin‑aligned allocation, while detractors labeled the strategy as risky and potentially self‑destructive.

Both reports highlight growing investor unease over MicroStrategy’s reliance on Bitcoin volatility and the viability of its STRC instrument amid a broader market downturn.