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Strategy markets a $13,400 Bitcoin floor for STRC preferred stock

The SEC briefing frames the floor as the BTC price where STRC’s illustrative coverage ratio hits 1.0x, not as a claim on Strategy’s Bitcoin or a solvency or recovery metric.

Reported · Written up by our desk · Market Structure

Strategy is marketing a roughly $13,400 “BTC Floor” for STRC, its variable-rate cumulative perpetual preferred stock, as Bitcoin trades near $78,000, according to an SEC-filed briefing summarized by CryptoSlate.

CryptoSlate reports the metric is defined narrowly as the Bitcoin price level where Strategy’s illustrative STRC coverage ratio reaches 1.0x, and the filed dashboard says it provides no claim on Strategy’s Bitcoin and carries no solvency or recovery meaning.

STRC closed at $97.33 on Aug. 28, translating to a 12.3% effective yield at the current $12 annualized dividend, while the filed dashboard used an Aug. 21 price of $96.18 and listed a 12.5% yield. The same dashboard shows $9.972 billion notional, 59 basis points of BTC Credit, 4.68% BTC Risk, and a -14.6% BTC Floor ARR.

CryptoSlate also notes that the floor is calculated by dividing covered notional by the number of Bitcoin held, and while spot Bitcoin changes the displayed rating, it leaves the 1.0x price unchanged with fixed company inputs. Using Bitcoin market data around Aug. 30, the rating could rise to about 5.84x while the floor stays near $13,421, and the model would increase further if the USD asset pool were depleted without changing debt or preferred notional.

Latest closeBitcoin $77,877.93 ▲0.1%

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