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    Home»Bitcoin»Bitcoin’s New Debt Machine Is Facing Its First Major Test
    Bitcoin

    Bitcoin’s New Debt Machine Is Facing Its First Major Test

    July 9, 20264 Mins Read


    Public companies kept stacking Bitcoin in June, but the month’s real story played out in a corner of the market that did not exist a couple of years ago: the preferred shares that treasury firms now use to fund their coin purchases. 

    A new report from BitcoinTreasuries.net calls June the first true stress test for this “digital credit” market, and the results offer a mixed but telling verdict on where corporate Bitcoin adoption goes next.

    First, the buying. Public treasuries added close to 9,000 BTC before sales in June, or about 7,300 BTC on a net basis, worth some $427 million at the month-end price of $58,398. That counts as moderate growth, and two names did most of the work. 

    Michael Saylor’s Strategy added 3,625 BTC net, and Strive added 3,364, with each company spending in the neighborhood of $200 million. 

    Strip out those two and the rest of the field bought about 2,000 BTC. For the full second quarter, the report estimates 110,000 BTC in net additions, a pace that beat the two quarters before it.

    The context matters here. Bitcoin sat well below its October 2025 peak near $126,000 and dipped under $60,000 during the month. That backdrop set the stage for the drama in digital credit.

    Preferred shares to fuel bitcoin

    To understand why that drama matters, it helps to know how the model works. Companies such as Strategy no longer rely on their own cash to buy Bitcoin. They issue preferred shares that promise investors a fixed or variable dividend, sell them near a $100 par value, and route the proceeds into coins.

    Strategy’s flagship product, STRC, and Strive’s version, SATA, became the two biggest of these instruments. For a stretch, they traded in a tight band around par, and investors treated them as a place to park money at a healthy yield.

    That calm bred risk. As the report explains, a long run near par let leverage build inside STRC as buyers borrowed to amplify the trade. When Bitcoin’s price slid, that leverage turned into a trigger. 

    Starting June 18, STRC and SATA fell below their $100 par. Leveraged holders got margin-called, forced sales pushed prices down, and STRC bottomed near $75. SATA weakened from a mix of its own pressures and spillover from STRC. 

    This was not a crisis of the underlying dividends, which kept flowing, but a crisis of positioning, the report framed.

    The recovery came fast enough to reassure the faithful. By July 2, STRC changed hands near $87 and SATA near $97, prices that held into the report’s July 9 publication. Neither Strategy nor Strive missed a dividend. 

    Strategy’s bitcoin holdings

    The report notes that Strategy held 847,363 BTC at an average cost near $75,651 and had a $1.1 billion dollar reserve in mid-June, while Strive kept an 18-month dividend reserve. The pitch: these are cash-flow questions, not solvency questions.

    Strategy did not sit still. Saylor’s firm rolled out share and digital-credit buybacks, raised STRC dividends, and set up a dollar reserve, a package meant to steady prices while it keeps buying coins. Saylor framed it as a balance between commitment to Bitcoin and the “liquidity, discipline, and active capital management” the credit strategy demands.

    Since then, Strategy has sold $3,588 and now holds 843,775 bitcoin. 

    The market voted with volume. Combined STRC and SATA trading topped $10 billion in June, a monthly record for each, and that came without new at-the-market share sales feeding the pipeline. Demand for the paper, in other words, did not vanish when the price broke.

    BitcoinTreasuries.net polled its readers, an audience it concedes leans pro-digital-credit, and found more optimism than fear. A slim majority, 52%, did not see the price drop as a major problem. Most holders sat tight, and 52% of all respondents bought STRC or SATA after June 18. 

    At the same time, three-quarters expect price swings to recur, so nobody is calling the risk gone. Looking ahead, 77.8% expect the digital-credit supply to grow by the end of 2027, and about a fifth expect it to clear $50 billion.



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