Strive reports more than $6 million paper loss after moving cash into Strategy’s STRC

Treasury shift into STRC

In March, Strive exchanged $50 million in cash for STRC and later added another $500,000, bringing its total outlay to $50.5 million. According to the filing, Strive held 505,000 shares.

By July 10, those shares were worth about $44.18 million. That left the position showing an unrealized loss of roughly $6.3 million before accounting for dividends. The disclosure was included in an SEC filing rather than highlighted in a separate announcement.

Price swings undercut cash-like thesis

Strive had described STRC as an alternative to idle cash that could provide income without significant instability in principal value. The subsequent trading pattern did not match that characterization.

The stock moved around on a daily basis and dropped as low as $71.25 on June 26. At that level, Strive’s 505,000-share position would have been worth about $36 million, implying a gap of more than $14 million compared with the original $50.5 million committed.

Although the share price later recovered from that low, the rebound was not enough to erase the decline relative to cost. As of July 10, the unrealized loss still stood at about 12.5% of the investment basis, excluding dividends.

Dividends narrowed, but did not erase, the loss

The income generated during Strive’s holding period reduced the damage but did not restore the position to where it would have been had the firm simply kept the funds in cash. The source article says dividends over that period amounted to roughly 4.4% of principal.

Even after including those payments, Strive was still down by more than $4 million compared with doing nothing and holding cash instead. In other words, the yield from STRC did not offset the decline in the market value of the shares.

What the filing shows

The filing provides a concrete measure of how far the position moved away from Strive’s original rationale for the purchase. The firm had effectively replaced a cash balance with an asset it viewed as cash-adjacent, but the mark-to-market results showed materially higher volatility and a lower value over the period described.

The source article also argues that the performance of STRC, together with questions around Strategy’s broader financial position, raises doubts about whether the shares can consistently trade near $100. The filing itself, however, chiefly shows that Strive’s swap out of cash had not preserved principal value by July 10.

The episode stands out because the comparison point is straightforward: cash would have remained at face value, while the STRC position was still underwater even after dividends. Based on the figures disclosed, Strive’s attempt to improve on idle cash instead resulted in a multimillion-dollar paper loss.