Bitcoin Decline, Strategy Preferred Stock Discounted by 8%! Three Key Reasons Revealed—Why STRC Is Approaching a Historical Low

Strategy (MSTR) STRC preferred stock closed at $91.79, nearly 8% below face value. Bitcoin’s pullback and debt repayment have reduced dividend coverage to 7 months, and competitor Strive’s SATA, with a higher yield and no debt, has created triple pressure that is pushing STRC close to its all-time lows.
(Background: Strategy expands financing by $42 billion! MicroStrategy plans to issue an additional $21 billion in common stock and $21 billion in preferred stock via ATM)
(Additional context: IOSG》MSTR STRC deep-dive research—the BTC financing flywheel behind an 11.5% yield)

Table of Contents

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• 1. Bitcoin Pullback Drags
• 2. Dividend Coverage Shrinks from 24 Months to 7 Months
• 3. Strive’s SATA: A Stronger Competitor
• Market Signal: Does STRC’s Yield Need to Increase Further?

MicroStrategy’s Strategy (MSTR) preferred stock STRC closed on Tuesday at $91.79, only slightly above its $90 issuance price when it began trading in July 2025. It trades at a nearly 8% discount to its $100 par value, setting the third-lowest closing price since listing.

This preferred stock—called the “Bitcoin flywheel” core component by Michael Saylor—was originally designed to trade close to $100 in face value. But the price action over the past several weeks shows that STRC is under triple pressure.

1. Bitcoin Pullback Drags

Historically, STRC has been highly correlated with Bitcoin’s price. Currently, BTC is consolidating around $65k, having pulled back about 50% from its October all-time high. STRC’s underlying asset is Strategy’s holdings of more than 850k Bitcoin; as BTC declines, it directly compresses the asset support for the preferred stock.

STRC’s past price performance has shown a clear pattern: it tends to rise to near face value before the ex-dividend date, then after the ex-dividend date it dips by about one dividend amount, and subsequently gradually recovers. But after the ex-dividend date on June 15, STRC did not rebound back toward face value as usual—instead, it has continued to hover below $92.

2. Dividend Coverage Shrinks from 24 Months to 7 Months

A more critical turning point has been in the capital structure. Strategy recently used part of its cash reserves to repay $1.5 billion in convertible debt, compressing the dividend coverage period from 24 months to about 7 months.

Although 7 months still does not sound short, relative to the market signal Saylor previously conveyed—“as long as BTC’s annualized return exceeds 2.05%, dividends can be paid forever”—the market’s concern is this: if BTC continues to trade sideways around $65k, is a 7-month buffer enough to support STRC’s commitment to pay dividends every two weeks?

3. Strive’s SATA: A Stronger Competitor

Another source of pressure comes from fellow Bitcoin-treasury company Strive (ASST). Its SATA preferred stock is currently trading at $99.99, nearly at par (face value), and offers an annual yield of about 13%, higher than STRC’s 11.5%.

SATA’s advantages are not only its higher yield:

• Daily dividends: SATA pays dividends daily, while STRC pays every two weeks
• No debt: Strive currently has no outstanding debt; SATA ranks highest within the capital structure
• Trades near face value: SATA stays close to the $100 face value, while STRC trades at an 8.2% discount

The price gap between the two securities has widened to $8.2, reaching the largest difference in history. For investors seeking stable cash flow, SATA’s combination of “no debt + higher yield + daily dividends” looks more attractive.

Market Signal: Does STRC’s Yield Need to Increase Further?

Based on STRC’s current share price and dividend yield, its annualized yield is about 12.53%. If the market wants to restore demand for buying STRC and push it back toward $100 face value, the implied signal is that STRC’s dividend yield needs to increase by roughly 100 basis points (to about a 12.5% coupon dividend rate) to attract buy-side interest.

For Taiwanese investors, this also provides a point of reference. Taiwan local bank time-deposit rates are around 1.5%, while high-dividend stock equity yields are about 5–7%. Even after taxes, STRC’s 12%+ yield remains attractive. But the fact that it trades at a discount also reminds investors that preferred stocks are not the same as time deposits; volatility in the underlying BTC is the key factor that ultimately determines the final return.