Strategy CEO Phong Le Reveals the One Mistake Behind STRC's 25% Collapse

Strategy CEO Phong Le says the company underestimated how much borrowed money would flow into STRC, its $9.3 billion preferred stock that lost a quarter of its value this summer. STRC pays a 12% annual dividend and is built to trade near its $100 face value. It sank to about $75 in late June and now trades at $99.Strategy's STRC Preferred Stock Performance. Source: TradingView How Borrowed Money Sank STRC Below $100 Le explained the selloff in an interview with Natalie Brunell. He said STRC's calm price invited investors to borrow against their Bitcoin (BTC) at about 6% to collect STRC's 12% yield. When Bitcoin fell, those loans came under pressure. Holders had to post more Bitcoin or sell STRC, Le said, and that forced selling drove the price lower.