Strategy boosts Bitcoin holdings, stabilizes STRC near par value amid market challenges

https://www.economist.com/finance-and-economics/2025/12/04/bitcoin-has-plunged-strategy-inc-is-an-early-victim Strategy, led by Michael Saylor, reported its Q2 financial results illustrating an increase in Bitcoin holdings despite a challenging market, alongside efforts to stabilize its preferred stock, STRC, near par value. The company managed to increase its BTC reserves to nearly 846,000 BTC, reduce its convertible debt to $6.7 billion, and bolster its USD reserves to support the STRC near its $100 par value. STRC had previously fallen below par, prompting Strategy to implement measures like an increased dividend rate and share buybacks to realign its price. The market’s response to these developments appears mixed. The “STRC Hits $100” prediction market reflects a 33% probability of STRC reaching $100 by December 31, with no significant change over the past week. The September 30 sub-market indicates a lower probability of 15.5%, suggesting that participants remain cautious about immediate recovery. The strategic measures taken by Strategy aim to convey confidence and stability, suggesting that the company prioritizes maintaining balance-sheet flexibility while defending its st...