Worried about STRC thunderstorms? Is a 25% drop in STRC scary?? There is even more terrifying!! ——Between the Life and Death of Strategy Preferred Stocks Many friends are currently focusing on STRC, which is quite well-known and has a novel setting around $100. However, in reality, STRC is not the only preferred stock in Strategy. In fact, including STRC, there are a total of five preferred stocks. According to the order of issuance, they are: 1. STRK ，Strike This is the first one, priced on January 30, 2025, with an issue price of $80 and settled on February 5. The characteristic is a fixed dividend of 8%, combined with convertible properties. Each STRK can initially be converted into 0.1 shares of MSTR, so STRK is more like a preferred stock plus MSTR call option. When MSTR rises, STRK has stock characteristics. When MSTR falls, the market will once again consider it as a high-risk preferred stock with an 8% dividend. 2. STRF ，Strife This is the second one, priced on March 20, 2025, with an issue price of $85 and settled on March 25. It is the one with the highest credit rating among the five, with a fixed annual dividend of 10% and quarterly cash dividends. Strategy also officially refers to it as senior most per preferred stock, which is the highest priority permanent preferred stock. Simply put, STRF is the most debt like among the five branches, with the weakest equity and relatively stable ranking. 3. STRD ，Stride This is the third one, priced on June 5, 2025, with an issue price of $85 and settled on June 10. STRD has a fixed annual dividend of 10% and quarterly dividends. The dividend is non cumulative, which means that if a certain period is not declared, there is no obligation to make up for it in the future. STRD is one of the five higher yielding bonds, with a high surface yield but also the highest risk compensation. 4. STRC ，Stretch This is the fourth one, priced on July 24, 2025, with an issue price of $90 and settled on July 29. The biggest feature of STRC is its variable dividend, with a face value designed at $100. The goal of Strategy is to adjust the dividend yield to make STRC trade around $100 as much as possible. STRC is the most similar high interest cash management product among the five, and it is also the most critical one, because if STRC falls too far, it means that the market no longer believes that the dividend mechanism is enough to support prices. 5. STRE，Stream This is the fifth one, also in Euro version, priced on November 6, 2025, with an issue price of 80 euros and settled on November 13. STRE has a face value of 100 euros, with a fixed annual dividend of 10% and quarterly cash dividends. STRE is a high-yield preferred stock issued by Strategy for European capital pools, with a logic similar to the Euro supplement version of STRF and STRD, but with significantly lower liquidity and market attention than the four US stocks. So if you only focus on STRC now, it's actually easy to miss the key points. STRC is indeed the most famous and the core of this controversy. The reason is simple. The design goal of STRC is to trade around $100 as much as possible. Now that it has fallen to over $70, it looks like the anchor has failed, so everyone naturally focuses on STRC. But if we look at the five preferred stocks together, STRC's current position is not the worst. STRC has fallen by about 25%, which is indeed unsightly, but STRD and STRK have fallen to $53, nearly halving their face value from $100. This difference is important because the problem with STRC is mainly mechanism pressure, while the problems with STRD and STRK are closer to credit ranking pressure. STRC still has at least one clear pricing logic. Strategy can try to bring the price back to around $100 by increasing the dividend yield of STRC. Whether this mechanism can remain effective or not is uncertain, but the market at least knows what the design goals of STRC are and why Strategy values STRC. Because STRC is too important for strategy. STRC is already the largest among the five preferred stocks and the main channel for Strategy to continue financing with preferred stocks. If STRC can maintain around $100, Strategy can continue to raise funds through STRC, use the money to buy BTC, replenish cash reserves, and pay preferred stock dividends. But once STRC stays at over $70 for a long time, the problem is not just that the price is ugly, but that this financing channel will be stuck. The market price of STRC now corresponds to a yield of over 15%, indicating that the market is telling Strategy that a dividend of 11.5% is no longer sufficient. If the dividend yield continues to increase, the financing cost of Strategy will become increasingly high. If not increased, STRC may continue to be lower than the target price, and investors' confidence in this mechanism will continue to decline. This is the real pressure of STRC. However, just pressure alone cannot be considered the biggest risk. The greater risk actually lies in STRD and STRK. STRD is one of the five higher yielding bonds with a fixed 10% dividend, now priced at $53, with a surface yield close to 19%. This yield looks good, but behind the high yield lies the market's demand for higher risk compensation. Especially with STRD ranking lower and weaker dividend protection, the market naturally offers deeper discounts. STRK is another issue. STRK originally had a fixed dividend of 8% and could also be converted into MSTR common stock, so when MSTR was strong, STRK could talk about stock characteristics and upward elasticity. But now that MSTR's common stock has plummeted, the conversion value of STRK has been compressed, and the market is no longer willing to pay too much premium for this part of the stock. The result was that the stock nature was not reflected, and credit risk was re priced, so STRK also fell to $53. This is the most authentic state of Strategy preferred stocks at present. If STRC falls, it indicates that there is a problem with Strategy's most important preferred stock financing tool. If STRF falls sharply, it indicates that the market is beginning to doubt the entire Strategy's advanced credit. If STRD and STRK remain at over $50 for a long time, it indicates that the market has demanded very high risk compensation for low-level preferred stocks. If Strategy wants to continue financing through preferred stocks in the future, the cost will become increasingly difficult. So the real concern now is not whether Strategy will explode or whether STRC has enough money to pay dividends. But Strategy's financing has started to switch from a tailwind mode to a headwind mode!! The logic of the past strategy was that BTC would rise, MSTR would rise, and both common and preferred stocks would be easy to sell. The money sold would continue to buy BTC, forming a positive cycle. The current pressure has turned into BTC falling, MSTR falling, common stock issuance becoming more diluted, STRC falling below the target range, preferred stock financing efficiency decreasing, dividends still to be paid, cash reserves and common stock ATM becoming more important. Financing difficulties, reduced purchases of Bitcoin, and the need to huddle together for the winter are what Strategy is currently facing. At present, there is no basis to say that Strategy has exploded, as Strategy still has a large amount of BTC assets, cash reserves, preferred stock dividends, and short-term debt interest buffers. And even if Strategy wants to sell Bitcoin to survive, it will not sell it in the secondary market. Of course, it is possible that if BTC continues to decline, MSTR continues to weaken, and preferred stocks continue to discount, Strategy's subsequent financing will become increasingly expensive, and ordinary shareholders will be further diluted. This is indeed a possible scenario, and it has happened three times in history. So the biggest headache for Strategy now should be how to raise funds if Bitcoin: native continues to decline!! And it is also necessary to continue financing without significantly diluting common stocks, significantly increasing preferred stock dividends, or selling BTC as much as possible. end?? Not yet! Since we know the problem, is there a solution? It's too long, I'll write the next one. Bitget is here, VIP! Crypto、 US shares CFD， Global Advantage One Stop Layout