#STRCHitsAllTimeLow

Strategy's STRC preferred stock, the Variable Rate Series A Perpetual Stretch Preferred designed to stabilize at a par value of $100, has plunged to an all-time low of $74.57 at the close of June 26, with pre-market indications further declining to $71.90.
This represents a 25.4% discount from par value, a stunning collapse for a security marketed as a stable income instrument.
The decline is relentless.
STRC traded at $89 on June 17, fell below $83 intraday on June 19, closed at $88.59 on June 20 with 10.7 million shares changing hands, then plunged through $75 on June 26 with another 6.28 million shares traded.
The root cause is the Bitcoin bear market.
BTC around $59,943, down more than 50% from its October 2025 record of $126,000, has destroyed the premium investors once placed on Strategy's capital structure.
On Friday, June 26, Strategy's mNAV ratio, which compares total market value to the value of its BTC holdings, fell below 1 for the first time, meaning the market now values the entire company less than the bitcoin it holds.
Strategy has unrealized BTC losses of over $13 billion, an amount exceeding the market capitalization of Dogecoin, Cardano, Chainlink, and hundreds of other tokens combined.
STRC's collapse has paralyzed Strategy's main capital raising mechanism.
Because STRC trades well below $99, the company has halted its at-the-market stock issuance program.
Issuing new STRC at around $74 while paying an $11.50 per share annual dividend means an effective funding cost above 15%, far exceeding the advertised rate of 11.5%.
At the end of May, Strategy sold 32 BTC for $2.5 million to fund STRC dividends, marking the company's first bitcoin sale, a dramatic reversal from its pure accumulation ethos.
TD Cowen maintains a Buy rating on common shares of MSTR with a $400 target, but the trajectory of the preferred stock tells a different story.
Rival Strive has launched a competing preferred product, SATA, which pays daily dividends, adding competitive pressure.
The dividend rate has been frozen at 11.50% for four consecutive months despite the stock trading below par, indicating Strategy is balancing cash obligations with rising cost risk.
For preferred stock investors, the effective yield of 15.4% at current prices is indeed tempting, but comes with real risks:
Dividends are not guaranteed.
These securities are perpetual with no maturity.
Further BTC downside could push STRC toward $60 or below.
The question is whether the yield compensates for structural risk, and currently the market is answering no.
@Gate_Square