MTSR news: Strategy's STRC preferred stock drops to a record low $89

The slide has paused the above-par share sales Strategy uses to fund bitcoin purchases, and it is the same stock whose dividends forced the company's first BTC sale this month.

MTSR news: Strategy's STRC preferred stock drops to a record low $89

Markets

Strategy's STRC preferred stock hits a record low below par

The slide has paused the above-par share sales Strategy uses to fund bitcoin purchases, and it is the same stock whose dividends forced the company's first BTC sale this month.

By

Shaurya Malwa

|

Edited by

Omkar Godbole

Updated

Jun 18, 2026, 5:57 a.m.

Published

Jun 18, 2026, 5:49 a.m.

2

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Strategy’s key funding vehicle, its STRC preferred stock, has fallen to a record low of $89, weakening a major channel the company uses to raise cash to buy bitcoin.

Because STRC now trades below its $100 par value, Strategy has paused issuing new shares through its at-the-market program, limiting its ability to keep adding to its bitcoin holdings.

The drop in STRC comes after Strategy sold bitcoin for the first time to fund preferred dividends.

A preferred stock that Strategy (MSTR) uses to help fund its bitcoin buying has fallen to a record low, constricting one of the company's funding channels.

Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, closed at $89 on Wednesday, its lowest level since it launched in July 2025.

That is about 11% below the roughly $100 the stock is designed to hold. A preferred stock is a class of equity that pays a fixed dividend and ranks ahead of common shares in payout order. STRC pays a variable dividend, currently at an effective rate of 12.9%, adjusted monthly to keep its price near $100.

Traders keep track of this discount because of how Strategy uses the stock.

When STRC trades above its $100 par, the company issues new shares through an at-the-market program, selling stock straight into the market, and uses the cash to buy bitcoin. With the stock now below par, Strategy has paused that program, removing one of the levers it relies on to keep accumulating. STRC is typically the most actively traded of its preferred shares.

The slide also lands on a sensitive instrument. STRC's dividends prompted Strategy to sell bitcoin for the first time since it began accumulating bitcoin in 2022. The company disclosed on June 1 that it had sold 32 coins for about $2.5 million in late May to fund STRC distributions, a move that rattled a market used to Chairman Michael Saylor's pledge never to sell.

Last week, Strategy said it had grown a dedicated U.S. dollar reserve to $1.1 billion to cover preferred dividends and debt, while still buying 1,587 bitcoin through separate sales of its common stock.

Strategy holds about 846,842 bitcoin, roughly 4% of the supply that will ever exist, making it the largest corporate holder.

STRC has dipped below par before, however, usually during stretches of bitcoin volatility. Bitcoin has held around $64,000 to $65,000 this week, and Strategy's common stock, MSTR, fell about 5% on Wednesday to $116.52.

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