Strategy’s STRC Preferred Stock Falls 11% Below Par as Market Pressure Grows

Strategy’s STRC preferred stock closed at $89 on Wednesday, marking one of its weakest trading sessions since launching in 2025. The stock, officially known as Variable Rate Series A Perpetual Stretch Preferred Stock, dropped as low as $88.50 during the day and finished about 11% below its intended $100 par value.

STRC was introduced by Strategy as part of its bitcoin-focused financing strategy under Executive Chairman Michael Saylor. The company uses products like STRC to raise funds for additional bitcoin purchases.

High Dividend Structure Faces Market Volatility

The preferred stock currently offers a 12.9% effective dividend rate, paid to investors twice a month in cash. Strategy designed STRC to remain close to the $100 level through regular dividend rate adjustments.

When the stock trades above par value, Strategy typically issues more shares and uses the proceeds to buy bitcoin. However, the company has paused that share sale program while STRC remains below target price levels.

Market analysts said the stock often weakens during periods of bitcoin uncertainty. Bitcoin has recently traded near $63,000 ahead of Federal Reserve policy decisions.

Despite concerns, analysts from Benchmark and TD Cowen recently pushed back against fears that Strategy could face a financial “death spiral” linked to its bitcoin-backed funding structure.