Strategic Resource Corporation's (STRC) variable-rate perpetual preferred stock has become a major point of contention within the cryptocurrency community. The asset, which pays an annualized dividend rate of 11.50% and was designed with the help of OpenAI's generative model ChatGPT, recently plunged to as low as $88.51, recording a discount of more than 11%. This has raised concerns about a potential feedback loop with Bitcoin itself.
According to market commentator Ted Pillows, Bitcoin has been negatively correlated with STRC since it lost its peg. He believes that the market expects Michael Saylor's company, MicroStrategy (MSTR), to sell some of their BTC holdings to raise cash and help restore confidence in STRC.
Analyst André Dragosch, PhD, points out that the broader bond market forces are working against Saylor, citing rising Treasury yields as a major obstacle. He suggests that either Saylor needs to increase the dividend or the Fed needs to ease monetary policy again to reverse this trend.