STRC depegging intensified in the early morning, once dropping to $82.7, and closed at $88.8

BlockBeats news, June 19, according to Bitget market data, the "Stretch" variable-rate perpetual preferred stock STRC issued by Strategy (MicroStrategy) experienced a severe depeg to a recent low, plummeting to as low as $82.7 early this morning, and closing at $88.8.

Reportedly, STRC is the preferred stock used by Strategy to raise funds from the market to buy Bitcoin. Its par value is roughly anchored at $100, pays a relatively high dividend, and its dividend rate adjusts according to price fluctuations, with the goal of keeping it trading close to par value. The significant depegging of STRC indicates that the market demands a higher yield, and also shows that investors' confidence in its creditworthiness/dividend stability has decreased. Previously, Strategy relied heavily on issuing STRC to finance its Bitcoin purchases; if the STRC price falls below par, it is no longer cost-effective for the company to issue new STRC, which is equivalent to borrowing at a higher cost. Therefore, its "continued ability to buy coins" would be weakened.