Strategy Halts Bitcoin Buying via STRC: Will BTC Drop Below $70K Again?

Strategy has suspended its aggressive Bitcoin accumulation, which was largely funded through sales of its STRC preferred stock, because the STRC share price has fallen below its $100 par value. This threshold is crucial because Strategy typically issues new STRC shares only when trading at or above par to maintain efficient capital raising for its at-the-market (ATM) issuance model. The halt follows two weeks where Strategy bought over 40,000 BTC, significantly outpacing new mining supply, with STRC proceeds being a key source. Historically, when STRC dips below $100, it has coincided with short-term pullbacks in Bitcoin's price; for example, a similar dip in January preceded a nearly 40% BTC decline. Given that Bitcoin recently tested $76,000 and is pulling back, this STRC action suggests a renewed risk of BTC dropping toward the $66,000–$68,000 support zone.

(Source：Cointelegraph)