What’s Driving Strategy’s Dividend Crypto Stock Down to Near-All-Time Lows

Strategy’s bitcoin-backed preferred stock continues to trade at a notable discount to its $100 par value, pressured by concerns over dividend coverage and increasing competition from Strive’s SATA.

The company’s (MSTR) dividend-paying preferred security, STRC, closed Tuesday at $91.79—its third-lowest level since its July 2025 debut—as weaker bitcoin prices and debt-related concerns weighed on performance.

Its only lower closes came shortly after launch, when the stock dropped to $88.60. Although introduced at around $90 and intended to trade near par, STRC has remained below $100 and has not returned to that level since May 15, the latest ex-dividend date.

Historically, STRC would approach par ahead of ex-dividend dates, before declining by roughly the dividend amount and then gradually recovering. That pattern broke on June 15, when the stock failed to rebound back toward $100.

Several factors appear to be driving the persistent weakness.

STRC has largely moved in line with bitcoin, which remains under pressure near $65,000—around 50% below its October peak. At the same time, dividend sustainability has become a concern. After using part of its cash reserves to repay $1.5 billion in convertible debt, Strategy’s dividend coverage has fallen to roughly seven months, down from about 24 months previously.

Meanwhile, investor demand has increasingly shifted toward Strive’s competing preferred security, SATA. The instrument continues to trade near its $100 par value while offering a higher yield of approximately 13%, compared to STRC’s 11.5%.

SATA also pays dividends daily, unlike STRC’s bi-monthly structure, and benefits from Strive’s debt-free balance sheet—placing it at the top of the capital structure without obligations to convertible debt holders.

As a result, the spread between the two securities has widened significantly. STRC now trades at an approximate $8.20 discount to SATA, the largest gap on record, with SATA priced just below par at $99.99.

Based on its current payout and market price, STRC offers an annualized yield of about 12.53%. This suggests the market may be signaling the need for roughly a 100-basis-point increase in its dividend to restore demand and move the stock closer to its intended par value.