Bitcoin's value dropped as Strategy's STRC stock hit a new low, raising concerns in the crypto market.
Bitcoin's value took a hit on Thursday as the primary preferred stock of Strategy, known as Stretch (STRC), fell to an all-time low shortly after U.S. markets opened.
STRC, which currently offers an annual dividend of 11.5%, dropped by 8% to $74.13, a significant decline of over 25% from its target par value of $100, according to Yahoo Finance.
During the same period, Bitcoin fell to $58,188 before making a slight recovery to $59,273, marking a 3.3% decrease in the past 24 hours, as reported by CoinGecko. This decline added to the cryptocurrency's recent struggles, having reached a 21-month low the previous day.
The pressure on Strategy’s stock has raised concerns about the vision of Executive Chairman Michael Saylor regarding “digital credit.” The company's common shares, MSTR, also saw a decline, dropping 7% to $87.50 before bouncing back to $87.89.
As Bitcoin and other cryptocurrencies plummeted, liquidations surged across the market. Data from CoinGlass revealed that over $1.44 billion in positions were liquidated in the last 24 hours, with long positions accounting for $1.2 billion. Bitcoin led these liquidations with approximately $658 million.
