STRC Plummets to $82.53 Intraday Low, Testing Saylor's Bitcoin Credit Machine

Strategy Inc.'s preferred stock, STRC, took a wild ride on Thursday, plummeting to an intraday low of $82.53 before rebounding to close at $88.59.

The stock's price action was a test for Michael Saylor's Bitcoin Credit Machine, which is designed to hover near $100.

STRC's variable-rate preferred stock has a dividend rate that can be adjusted monthly to encourage trading near par, but the current 11.50% annualized rate failed to attract investors as prices fell.

Jesse Myers of The Smarter Web Company described the episode as 'a liquidation cascade,' not a failure of Strategy's model, while Colin Talks Crypto warned that the pressure may not be finished if bitcoin's bear market continues.