- Strive Inc. purchased $50 million of Strategy’s STRC stock in March to replace “idle cash,” expecting stable prices and high yields.
- Three months later, the investment has lost 3.7% ($1.86 million) in value despite receiving monthly dividends.
- STRC is not a cash instrument but a stock, and Strategy can suspend its dividends at any time, offering no redemption guarantees.
On March 11, Strive Inc. executed a high-profile corporate treasury move, buying 500,000 shares of Strategy‘s STRC at full par value. The company, co-founded by Vivek Ramaswamy, argued this was smarter than holding cash.
Chief executive Matt Cole said STRC provided “strong yield dynamics while maintaining stable price behavior.” Consequently, the firm used over a third of its cash for the purchase.
However, the stock’s price stability proved illusory. STRC shares closed at $93.40 on Friday, down 6.6% from Strive’s purchase price.
Including three monthly dividend payments, the $50 million position is now worth just $48.14 million. This represents a $1.86 million loss in just three months.
Senior leadership had been optimistic about the asset. Chief risk officer Jeff Walton Bitcoin–STRC/default.aspx” target=”_blank” rel=”noreferrer noopener”>claimed STRC “offers clear advantages over traditional fixed income assets.”
Contrary to its marketing, STRC is not an insured deposit product. It is a stock with no redemption right, and Strategy can suspend its dividends at its discretion.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
