Strategy’s STRC preferred stock falls to all-time low of $82.53
The Bitcoin treasury giant's flagship preferred equity sinks well below par value, raising questions about dividend sustainability and future acquisition funding
Strategy Inc’s marquee preferred stock, STRC, hit an intraday low of $82.53 this week, marking its worst trading level since the security launched last July. For a stock with a $100 par value that debuted at $90, that’s a steep slide in under a year.
The drop puts STRC roughly 17.5% below its par value and about 8.3% below its IPO price. It closed near $89, but the damage to investor confidence may prove harder to recover from than the price chart suggests.
What STRC is and why it matters
It’s a Variable Rate Series A Perpetual Stretch Preferred Stock. It pays monthly cash dividends at an adjustable rate, currently 11.50% annually based on that $100 par value, and it sits in the capital structure above common equity but below debt.
Strategy, formerly known as MicroStrategy, issued 28,011,111 shares of STRC between July 24 and 29, 2025, raising approximately $2.5 billion. The dividend rate started at 9.00% and has since climbed to 11.50%.
When STRC trades above par, Strategy can sell additional shares through its ATM program and use the proceeds to buy more Bitcoin. When STRC trades below par, that engine stalls.
The funding flywheel hits a wall
With STRC trading well below $100, Strategy has reportedly halted its above-par ATM sales for Bitcoin purchases. Reports indicate Strategy has been selling Bitcoin to meet its dividend obligations on STRC.
At an 11.50% annual dividend rate on a $100 par value across roughly 28 million shares, the math on those monthly payouts is considerable. Options markets are reflecting the unease, with bearish activity on STRC picking up meaningfully.
What this means for investors
STRC’s struggles don’t represent an existential threat to Strategy. The preferred stock ranks junior to the company’s debt obligations, meaning bondholders get paid first regardless.
Without above-par ATM issuances, Strategy loses one of its primary tools for acquiring Bitcoin. Executive Chairman Michael Saylor and CEO Phong Le now face a tricky balancing act: servicing preferred dividends without systematically liquidating the Bitcoin treasury.
The variable rate mechanism, which has already pushed the dividend from 9.00% to 11.50%, could continue climbing, tightening the financial screws on Strategy with every upward adjustment.
Trading near $89 at close, with intraday prints as low as $82.53, STRC is sending a clear signal: investors want more clarity on how Strategy plans to fund both its dividends and its Bitcoin ambitions simultaneously, because right now, those two goals appear to be competing with each other.