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Saylor says Strategy’s STRC was designed with AI as shares fell below par

Saylor says Strategy’s STRC was designed with AI as shares fell below par

Strategy’s perpetual preferred stock fell to about $82.50-$83 and closed near $88.59-$88.8 as Bitcoin weakness, a $1.5 billion 2029 convertible bond buyback and forced deleveraging fueled scrutiny of coverage and funding terms.

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Fact Check
All major elements of the claim are corroborated. The SEC 424B5 prospectus confirms STRC's $100 stated amount, monthly dividends, and the rate-adjustment mechanism designed to maintain a ~$100 trading price. BeInCrypto and Yahoo Finance both report Saylor's direct quote that STRC was structured using AI ('When we did STRC, I did it all with AI'). The crypto.news article confirms STRC fell ~15% below par to a record low of $82.53 (consistent with the claimed $82.50-$83 range, later rebounding to $86.97), drew Peter Schiff's criticism, and was accompanied by deleveraging actions (convertible note repurchases and equity sales). The only minor nuance is that the exact AI quote per BeInCrypto reads 'I did it all with AI' rather than the claim's softer 'AI helped structure,' but this difference favors rather than undermines the claim.
Summary

Michael Saylor said Strategy’s STRC preferred stock was designed with AI assistance as a variable-rate perpetual preferred intended to pay monthly dividends and trade near its $100 par value. The shares later fell sharply below par and below their $90 IPO price, reaching intraday lows around $82.50 to $83 on June 18-19 before rebounding to close near $88.59 to $88.8. Critics including Peter Schiff said investors had been misled, while Strive CEO Matt Cole and other analysts said the selloff in STRC and SATA appeared to reflect a leverage liquidation event rather than worsening credit quality. CoinDesk and other reports said investors were also focused on Bitcoin weakness, pressure on cash reserves after a $1.5 billion 2029 convertible bond buyback, potential dilution, dividend coverage and whether Strategy can keep using preferred stock to fund Bitcoin purchases on attractive terms.

Terms & Concepts
  • variable-rate perpetual preferred stock: Preferred shares with no maturity date and a dividend rate that can change over time.
  • par value: The stated face value of a security; STRC was structured around a $100 par value.
  • convertible bond: Debt that can be exchanged for shares.