STRC Preferred Stock Hits New Lows, Trading Under Par in Strategy Setback

Here’s another rewrite with a more compact, publication-ready financial tone:

The decline has temporarily shut down Strategy’s ability to issue STRC shares above par, removing a key funding channel used to finance bitcoin purchases. The weakness has also contributed to the company’s first bitcoin sale this month due to dividend obligations tied to the instrument.

Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), a core part of its bitcoin accumulation strategy, has fallen to a record low, tightening capital flexibility.

STRC closed at $89 on Wednesday, its lowest level since launching in July 2025, leaving it about 11% below its $100 par value.

The security pays a variable dividend currently around 12.9% annualized, adjusted monthly with the aim of keeping the price near par. When STRC trades above $100, Strategy can issue new shares via an at-the-market program and deploy the proceeds into bitcoin purchases. With the stock now below par, that issuance has been paused.

The move comes after STRC-linked dividend obligations forced Strategy to sell bitcoin for the first time since beginning its accumulation in 2022. The company said it sold 32 BTC for roughly $2.5 million in late May to fund payouts, a notable shift from Michael Saylor’s long-held “no-selling” stance.

Earlier this month, Strategy reported a $1.1 billion cash reserve to support preferred dividends and debt obligations, even as it continued adding 1,587 BTC through common equity issuance.

The company remains the largest corporate holder of bitcoin, with about 846,842 BTC, roughly 4% of total supply.

STRC has previously traded below par during periods of bitcoin volatility. Bitcoin has recently held between $64,000 and $65,000, while Strategy’s common stock (MSTR) declined about 5% on Wednesday to $116.52.