Strategy's STRC Preferred Stock Hits New Record Low of $89

Strategy Inc.’s perpetual preferred stock STRC has fallen to a new record low of $89.00, extending its discount to the targeted $100 par value and raising questions about capital-raising momentum and competitive positioning in the Bitcoin-backed yield sector. As of the June 17 close, the shares traded at $89.00, down more than 3% on the day, pushing the effective yield to approximately 12.92% based on the current 11.50% annualized variable dividend rate. The stock has not traded at par since mid-May and now sits more than 11% below its intended level.

STRC, marketed by Michael Saylor’s Strategy as “Stretch” or Short Duration High Yield Credit, is a perpetual preferred stock designed to deliver relatively stable monthly (now semi-monthly) income while giving the company a flexible tool to raise capital for Bitcoin accumulation. The structure includes built-in mechanisms to keep the price near $100: when shares trade above par, Strategy can issue more through at-the-market programs to raise fresh funds for additional Bitcoin purchases; when they trade below par, the company adjusts the dividend rate higher or offers other incentives to attract buyers and support the price.

In recent weeks the shares first showed signs of stabilization after Strategy received shareholder approval to move from monthly to semi-monthly dividend payments. The change, with the final monthly payment scheduled for June 30 and the first semi-monthly payout on July 15, was intended to reduce reinvestment lag and improve liquidity for investors. Early trading suggested the more frequent distributions were helping, with the stock rebounding from the low $90s toward $97. However, selling pressure quickly reasserted itself, driving STRC to successive lows and the current $89 level—the lowest since its July 2025 launch.

A significant catalyst for the renewed decline was Strategy’s June 1 disclosure that it sold 32 Bitcoin at the end of May for approximately $2.5 million. The proceeds were used to help cover STRC dividend distributions. This marked the first Bitcoin sale by the company since 2022, even though the amount was modest relative to its holdings of more than 846,000 BTC. The move prompted investor questions about long-term capital-raising capacity and whether occasional sales might become necessary. Executive Chairman Michael Saylor responded publicly, stating the company’s goal is to make STRC “the best credit instrument in the world.”

Adding to the pressure is intensifying competition from Strive’s SATA perpetual preferred stock. SATA offers a higher 13% annualized yield and, as of June 16, began paying dividends daily—significantly more frequent than STRC’s new semi-monthly cadence. SATA has now traded at its $100 par ever since the change, and some income-focused investors appear to be rotating capital toward the higher-yielding, daily-pay, debt-free alternative. The spread between the two products has widened notably in recent sessions.

Despite the price weakness, Strategy maintains meaningful defensive resources. The company recently increased its USD cash reserves by $100 million to more than $1 billion, providing a liquidity buffer during periods when raising new preferred capital is more challenging. It has also continued Bitcoin purchases while building those reserves. With STRC’s notional value exceeding $10 billion, the preferred stock remains a core part of Strategy’s financing strategy even as current market pricing reflects short-term caution.

The drop to $89 reflects the combined impact of the symbolic Bitcoin sale, broader Bitcoin price softness, the effects of the dividend-frequency transition, and direct competition from a higher-yielding daily-pay rival. Strategy’s variable-rate design gives it flexibility to respond—potentially through further dividend-rate increases or additional payment-frequency adjustments if investor preferences continue shifting. For now, the discounted price delivers a materially higher effective yield than at par, but sustaining the product’s target trading range will depend on restoring capital inflows and managing competitive dynamics in the evolving Bitcoin-backed credit market.