K33: Strategy's STRC financing model made its capital structure more expensive
- —STRC helped Strategy acquire nearly 100,000 BTC in H1
- —Annual dividend costs tied to STRC rose by $725 million, or about 8,740 BTC
- —Without STRC, Strategy would hold 843,303 BTC versus its actual 848,250 BTC
- —STRC closed at $99.90, recovering toward its $100 par value after buybacks
Why it matters: The debate over Strategy's cost of capital matters for assessing the sustainability of the largest corporate bitcoin holder and its future purchases.
Source: FXStreet Crypto