Strategy's STRC Sits Below Parity for Fifth Month

Despite Strategy buying hundreds of millions of dollars' worth of STRC, its variable-rate perpetual stock, in repeated attempts to restore it to par, the securities have traded below $100 since May 15.

Thus, despite pledges from top executives and directors, MSTR has failed to achieve its publicly declared objective of returning STRC to $100.

Strategy and its STRC perps suffered from MSCI's announcement that MSTR is deemed a "non-operating business" and will be excluded from its Global Investable Market Indexes.

Strategy Still Unable to Lift STRC to Par

Strategy's plan to bring STRC back to par—issuing new MSTR shares, occasionally selling a small part of its large bitcoin holdings, and buying back a substantial portion of outstanding STRC—has not worked out.

At the time of writing, STRC continues to trade below $100.

STRC's price movements have mirrored the headwinds MSTR has faced.

In addition to the MSCI delisting, the failure of the CLARITY Act to pass in September coincided with MSTR dropping 7% and STRC declining from about $0.99 to $0.97.

Before that, Strategy and its perpetuals had fallen sharply after the company reported an $8 billion loss in its Q2 earnings.

What to expect from MSTR when it reports Q3 results on October 29 remains uncertain.