{"id":76874,"date":"2026-08-16T14:41:31","date_gmt":"2026-08-16T14:41:31","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-drops-47-while-strategys-strc-gains-9-in-a-year\/"},"modified":"2026-08-16T14:41:31","modified_gmt":"2026-08-16T14:41:31","slug":"bitcoin-drops-47-while-strategys-strc-gains-9-in-a-year","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-drops-47-while-strategys-strc-gains-9-in-a-year\/","title":{"rendered":"Bitcoin Drops 47% While Strategy\u2019s STRC Gains 9% in a Year"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">STRC outperformed bitcoin by 56 percentage points over one year.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Strategy\u2019s other preferred securities recorded losses of 8% to 27%.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Strategy\u2019s common stock closed about 76% below its year-earlier level.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>STRC Outperforms as Bitcoin Declines<\/h2>\n<p>STRC outpaced bitcoin by 56 percentage points over the past year, according to a one-year return chart Strategy Inc. (Nasdaq: MSTR) Executive Chairman Michael Saylor shared Aug. 16 on X. The chart measured returns through the Aug. 14 market close and highlighted <a href=\"https:\/\/x.com\/saylor\/status\/2088887563272474948\" target=\"_blank\" rel=\"noopener noreferrer\">the performance gap between bitcoin and Strategy\u2019s income-producing securities<\/a> during the downturn.<\/p>\n<p>Saylor wrote:<\/p>\n<blockquote>\n<p>\u201cOver the past year, $BTC fell 47%. Our Digital Credit instruments ranged from -27% to +9%, with $STRC up 9%.\u201d<\/p>\n<\/blockquote>\n<p>The accompanying chart showed STRD declining 8%, STRF losing 9% and STRK falling 27%, with bitcoin trading near $63,000 on Aug. 16. Strategy stated that the one-year calculations covered Aug. 14, 2025, through Aug. 14 and included cash dividends and distributions, making the figures broader than share-price changes alone.<\/p>\n<figure id=\"attachment_839781\" aria-describedby=\"caption-attachment-839781\" style=\"width:685px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-839781\" class=\"wp-caption-text\">One-year returns for Strategy\u2019s preferred securities and bitcoin. Source: Michael Saylor\/Strategy Inc. via X<\/figcaption><\/figure>\n<p>Stretch, trading under the STRC ticker, is a perpetual preferred stock with a variable annualized dividend rate designed to encourage trading near its $100 stated value. Strategy\u2019s<a href=\"https:\/\/www.strategy.com\/strc\/learn\" target=\"_blank\" rel=\"noopener noreferrer\"> official STRC information page<\/a> lists a 12% annualized rate for August, with cash dividends payable semi-monthly, subject to board declaration.<\/p>\n<p>STRD is Strategy\u2019s perpetual preferred stock with a stated fixed 10% annual dividend payable quarterly. STRF is the company\u2019s senior-most perpetual preferred stock, offering a stated fixed 10% annual cash dividend payable quarterly. STRK is its convertible perpetual preferred stock with a stated 8% annual dividend payable quarterly. The dividends are not guaranteed.<\/p>\n<h2>Dividends Reshape the Return Comparison<\/h2>\n<p>STRC\u2019s 9% one-year gain differs from its current 12% annualized dividend rate, which applied to only part of the measured period. The preferred stock launched in July 2025 at a 9% rate and climbed through seven consecutive monthly increases before reaching 12% for record dates on or after July 1. Its market price may rise or fall, while dividends were included in the reported one-year return.<\/p>\n<p>Strategy described digital credit as a central funding channel in its <a href=\"https:\/\/www.strategy.com\/press\/strategy-announces-second-quarter-2026-financial-results_07-30-2026\" target=\"_blank\" rel=\"noopener noreferrer\">second-quarter financial results<\/a>. The company reported that STRC issuances raised $7.53 billion year to date in 2026 as of July 26, a 254% increase, while cumulative dividends paid across all preferred stock reached $1.06 billion.<\/p>\n<p>The company\u2019s <a href=\"https:\/\/www.strategy.com\/press\/strategy-announces-digital-credit-capital-framework_06-29-2026\" target=\"_blank\" rel=\"noopener noreferrer\">Digital Credit Capital Framework<\/a> established a cash reserve policy, revised STRC\u2019s dividend policy, and authorized up to $1 billion in preferred-security repurchases alongside a separate $1 billion common stock repurchase program. Strategy also authorized bitcoin sales for specified purposes, including funding reserves, dividends, interest payments, and approved buybacks.<\/p>\n<p>Saylor has presented STRC as the income-producing layer of a <a href=\"https:\/\/news.bitcoin.com\/featured\/michael-saylor-maps-bitcoin-into-4-part-digital-money-stack\/\">four-part digital money stack<\/a>. His model assigns bitcoin the capital role while using preferred securities to create income instruments with different volatility and risk characteristics.<\/p>\n<h2>Lower Volatility Does Not Eliminate Risk<\/h2>\n<p>Despite its positive one-year return, STRC fell to an all-time low of $71.25 on June 26 and has traded below its $100 stated value since. Strategy <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/strategy-strc-dividend-12-percent-below-par\/\">maintained its 12% dividend rate<\/a> for August after the preferred stock closed July at $89.46, reflecting the company\u2019s effort to support its market price.<\/p>\n<p>Digital credit repurchases began in late July, when the firm bought 288,930 STRC shares for about $25 million, an average of $86.53 per share and a 13.47% discount to the $100 stated amount. Strategy has sold approximately $218.4 million of bitcoin year to date to fund a portion of its preferred dividends.<\/p>\n<p>The dividend structure depends partly on Strategy\u2019s ability to meet continuing cash obligations while maintaining its bitcoin-focused balance sheet. The preferred stock is not collateralized by the company\u2019s bitcoin holdings. Saylor previously said bitcoin would need to achieve annual appreciation above the company\u2019s <a href=\"https:\/\/news.bitcoin.com\/saylor-btc-breakeven-arr-strc-dividends\/\">BTC breakeven rate<\/a> for capital gains to cover STRC dividends over time.<\/p>\n<p>Bitcoin <a href=\"https:\/\/www.bitcoin.com\/get-started\/bitcoin\/basics\/bitcoin-as-an-asset-class\/\" target=\"_blank\" rel=\"noopener noreferrer\">as an asset class<\/a> historically carries substantially greater volatility than traditional stocks, bonds, and commodities, which is the gap Strategy\u2019s preferred structures are built to narrow.<\/p>\n<h2>Where Strategy\u2019s Common Stock Stands<\/h2>\n<p>The one-year chart covered Strategy\u2019s four preferred securities alongside bitcoin, while MSTR, the company\u2019s class A common stock, sits below all of them in the capital structure. <a href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-MSTR\/?timeframe=12M\" target=\"_blank\" rel=\"noopener noreferrer\">MSTR closed at $93.04<\/a> on Aug. 14, roughly 75.52% below its level a year earlier.<\/p>\n<figure id=\"attachment_839795\" aria-describedby=\"caption-attachment-839795\" style=\"width:1699px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-839795 size-full\" src=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/strategy-mstr-stock-price-chart.jpg\" alt=\"\" width=\"1699\" height=\"602\" srcset=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/strategy-mstr-stock-price-chart-300x106.jpg 300w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/strategy-mstr-stock-price-chart-1024x363.jpg 1024w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/strategy-mstr-stock-price-chart-768x272.jpg 768w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/strategy-mstr-stock-price-chart-1536x544.jpg 1536w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/strategy-mstr-stock-price-chart.jpg 1699w\" sizes=\"auto, (max-width: 1699px) 100vw, 1699px\"\/><figcaption id=\"caption-attachment-839795\" class=\"wp-caption-text\">Strategy Inc.\u2019s MSTR price chart. Source: TradingView<\/figcaption><\/figure>\n<p>Common shareholders hold the residual claim after preferred dividends, which reached $400.7 million in the second quarter alone. Strategy posted a second-quarter net loss of $8.22 billion, or $24.45 per diluted common share, on an $8.32 billion unrealized loss on its digital assets. The $1 billion MSTR repurchase program remains fully available, with the company saying it will consider buybacks when management believes the stock trades below intrinsic value.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/featured\/saylor-bitcoin-drops-47-while-strategys-strc-gains-9-in-a-year\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways STRC outperformed bitcoin by 56 percentage points over one year. Strategy\u2019s other preferred securities recorded losses of 8% to 27%. Strategy\u2019s common stock closed about 76% below its year-earlier level. STRC Outperforms as Bitcoin Declines STRC outpaced bitcoin by 56 percentage points over the past year, [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":76875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/76874"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=76874"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/76874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/76875"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=76874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=76874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=76874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}