Strategy's STRC Preferred Stock Sinks to Around $89, Roughly 11% Below Par - Unchained

Strategy‘s perpetual preferred stock, STRC, has fallen to around $89, roughly 11% below its $100 par value and among the lowest levels since the security began trading in July 2025.

STRC is engineered to trade near par. Strategy adjusts the instrument’s dividend rate each month to steer the share price toward $100 and strip out volatility, a mechanism that works only as long as the stock holds near that level. Maintaining the price close to par is critical to Strategy’s ability to issue new STRC shares through its at-the-market program, which generates capital for bitcoin purchases, debt management, and dividend coverage. As the stock sinks further below par, that funding channel becomes harder to use.

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The pressure has been building for weeks. STRC has not traded at par since mid-April, and the latest leg down comes amid a weaker bitcoin price and growing scrutiny of Strategy’s cash reserves relative to its dividend obligations. Investors have increasingly favored rival bitcoin-treasury preferred securities, particularly Strive‘s SATA, which has offered a higher yield, daily dividend payments, and a debt-free structure, drawing capital away from STRC. The widening gap between the two has been among the largest on record.

Strategy has so far held STRC’s dividend rate at 11.5% for several consecutive months rather than raising it, balancing the cost of a higher payout against the risk of growing cash obligations. The current price suggests the market may be pressing for an increase of roughly 100 basis points to restore demand and pull STRC back toward par. The company has also weighed shifting to semi-monthly dividend payments to dampen price swings, a proposal subject to a shareholder vote. For now, the slide underscores the strain on a financing model that depends on the preferred stock trading near par.

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