How STRC Lost Its Footing: A Timeline of Strategy’s Preferred Stock Selloff

A combination of debt buybacks, reduced liquidity reserves, and a weakening bitcoin market set off the sequence that dragged STRC away from its $100 par value and into broader market scrutiny.

STRC, the dividend-paying preferred equity issued by bitcoin treasury firm Strategy (MSTR), is structured to trade at par—but sustaining that level has proven inconsistent.

On Thursday, the security fell below $83, around 17% beneath its target and its lowest point since its July 2025 debut. The drop stands out for an instrument positioned as high-yield yet low-volatility.

Maintaining a price near par is crucial for Strategy, as it enables efficient capital raising through at-the-market (ATM) offerings used to fund its 11.5% annual dividend.

In recent weeks, declining bitcoin prices, coupled with a series of corporate actions, have pushed STRC materially lower. The timeline unfolded as follows:

May 14: STRC closed at $100 ahead of its ex-dividend date, while bitcoin traded above $80,000, suggesting stability. However, bitcoin was already well below its $126,000 peak, and STRC’s hold on par was largely confined to the pre-dividend period.

That same day, Strive Asset Management announced daily dividend payments for its competing product, SATA, offering a higher 13% yield. This intensified pressure on Strategy, which was seeking approval to shift STRC to semi-monthly payouts to reduce volatility.

May 15: Strategy revealed a $1.5 billion buyback of its 2029 convertible notes at an 8% discount. The transaction was partly funded using a reserve originally intended for dividends and debt servicing, though this was not disclosed at the time. Bitcoin slipped to $78,000.

May 18: Strategy acquired 24,869 BTC as prices drifted toward $76,000.

May 26: The company confirmed it had tapped its reserve for the buyback, reducing it to $871 million—equivalent to roughly six months of dividend coverage, down from a prior target of 24 months. STRC traded at $99.33.

June 1: Strategy sold 32 BTC—its first sale since 2022—signaling a willingness to liquidate holdings if needed to support dividends. Despite its small size, the move affected sentiment: MSTR fell 5.9%, and bitcoin dropped to around $71,000. STRC closed at $98.07.

June 5: Bitcoin fell below $60,000 for the first time since October 2024, closing near $61,000. STRC declined sharply, touching $90 before ending at $93.40.

June 8: Shareholders approved semi-monthly dividend payments. Strategy added 1,550 BTC and said reserves had recovered to $1 billion.

June 15: Another 1,587 BTC purchase pushed reserves to $1.1 billion.

June 18: STRC dropped below $83 intraday before closing at $88.59 ahead of a U.S. holiday. Bitcoin also reversed gains, falling to $62,880. Market participants largely attributed the weakness to leverage-driven liquidations rather than deteriorating credit fundamentals.

Strategy now holds 846,842 BTC at an average cost of $75,656, leaving it with an unrealized loss of roughly $11.1 billion at current prices.

At the same time, recent capital raises have been viewed as dilutive, drawing investor criticism. MSTR shares now trade near $112, down about 80% from their November 2024 peak.

All of this has unfolded during a bitcoin bear market, compounding pressure on both the asset and the financial structures built around it.

The key question now is whether STRC can stabilize and return to its $100 par value—or remain weighed down by ongoing market and structural headwinds.