Strategy Defends STRC Amid Bitcoin Price Weakness

Strategy, the largest corporate holder of Bitcoin, has been under pressure as the price of BTC hovers near $60,000, which is 50% below its peak. To defend its preferred equity, known as STRC, Strategy raised the dividend to 12% and authorized $2 billion in buybacks while unlocking further Bitcoin sales.

Jim Ferraioli, director of crypto research and strategy at the Schwab Center for Financial Research, stated that 'the market is supportive of these actions.' He described the response as a check on fears of cascading liquidations.

Ferraioli acknowledged fair criticism, noting that Strategy's shift from a 'never sell' stance to strategically selling Bitcoin could limit its capacity to issue shares and buy more BTC in the second half of the year.