Strategy’s STRC Falls Far Below Par Value as Bitcoin Decline Pressures Investor Confidence

Strategy’s dividend paying preferred stock, STRC, has come under pressure after falling below its intended $100 par value. The stock dropped to an intraday low below $83, marking its weakest level since launching in July 2025.

The decline comes as Bitcoin has fallen sharply from its record high of $126,000 in October 2025 to around $63,500, creating challenges for companies heavily tied to the cryptocurrency market.

Key Events Behind the STRC Sell-Off

In May, Strategy announced a $1.5 billion repurchase of its 2029 convertible notes at an 8% discount. The deal was partly funded using a cash reserve that had been set aside for dividend and debt obligations. By late May, that reserve had fallen to $871 million, enough to cover only about six months of STRC dividends.

Bitcoin Weakness Adds More Pressure

Strategy later sold 32 Bitcoin, its first sale since 2022, while continuing to make additional BTC purchases. The company now holds 846,842 Bitcoin acquired at an average cost of $75,656 each.

With Bitcoin trading well below that level, Strategy is facing an unrealized loss of roughly $11.14 billion. Investors have also questioned recent capital raises, while STRC and the company’s broader capital structure remain under pressure during the ongoing crypto market downturn.