Strategy’s Bitcoin-Linked Preferred Stock STRC Falls to Historic Low

Strategy, formerly known as MicroStrategy, has long financed bitcoin purchases by issuing common stock, convertible bonds and preferred shares including STRC. With a par value of $100, STRC is central to the company’s low-cost funding chain. When it trades at a discount, new issuance becomes less attractive and fundraising less efficient, weakening Strategy’s ability to keep accumulating bitcoin and support MSTR’s valuation.

Cantor Fitzgerald said on July 6, 2026, that restoring STRC to its $100 par value was Strategy’s top priority. STRC traded at $87.79 in early trading, while bitcoin was at about $61,800 and MSTR fell 3.4% to $97.34. Strategy announced the sale of $216 million in bitcoin to fund dividends, increased its cash dividend coverage from about 10 months to 18 months and may also conduct buybacks.

Strategy (MSTR) launched perpetual preferred stock STRC last year, attracting capital with a $100 par value per share and an initial 9% yield. It raised a cumulative $10.5 billion to buy Bitcoin. The dividend yield later rose to 11.5%. Because this high-yield financing model helped make Strategy the largest corporate buyer, STRC's fall below par was seen as a critical stress test for the crypto market's leverage cycle.

Bitcoin fell to $58,190 on June 25, its lowest level in 21 months, while STRC dropped below $75 from its $100 par value. Strategy switched to floating pricing on June 29 and may sell Bitcoin to fund dividends if necessary. Bitwise Chief Investment Officer Matt Hougan said on July 1 that Strategy was not nearing liquidation, citing $52 billion in liquid assets and $7 billion in debt. He said the deleveraging indicated the cycle was nearing a bottom and that institutions would take over as the main source of buying.

MicroStrategy, now known as Strategy, has raised funds by issuing STRC perpetual preferred stock and used the proceeds to add to its Bitcoin holdings. Investors have relied primarily on dividends and the shares’ $100 par value to underpin confidence. When Bitcoin fell to about $73,000, STRC dropped below $99, raising concerns about whether the company could continue raising capital, paying dividends and maintaining its Bitcoin treasury strategy.

As of July 19, 2026, STRC had extended its decline from below $99 to $75. It had also traded at $88–$89 during the period, while its annualized dividend yield rose to about 11.5%. Strategy’s latest cash reserves were estimated to cover about 10 months of dividends, up from roughly six months previously, but the widening discount showed that retail investor confidence continued to weaken.

Strategy, formerly MicroStrategy, has raised funds by issuing perpetual preferred stock STRC to expand its bitcoin holdings, closely linking the company's securities, leveraged financing and the crypto market. After STRC fell below its $100-per-share benchmark, investors grew concerned that its fundraising capacity and dividend commitments could come under pressure. The preferred stock's price swings have therefore become a key gauge of confidence in Strategy's creditworthiness and bitcoin strategy.

On June 18, STRC fell to its lowest level since issuance, subjecting highly leveraged investors to margin calls and forced liquidations. Strive's CEO stressed that the sharp declines in STRC and SATA stemmed from leveraged liquidations rather than deteriorating credit. The selling subsequently spread to the cryptocurrency market, briefly driving bitcoin down to about $62,000, while DeFi and smart-contract tokens also led losses.

Strategy, formerly known as MicroStrategy, raises funds through common and preferred stock offerings to continue accumulating Bitcoin. STRC is its perpetual preferred stock with a $100 par value and an 11.5% dividend yield. When the market price falls below par, the company's ability to raise funds through at-the-market offerings becomes constrained, weakening the steady buying demand that the market had expected.

After going ex-dividend on March 13, 2026, STRC closed at $99.69 and remained below the $100 threshold through March 18, prompting Strategy to pause Bitcoin purchases through that channel. The company had bought 17,994 BTC and 22,337 BTC in the previous two weeks, respectively, for a combined 40,331 BTC. The abrupt halt in this funding engine has raised questions about whether BTC could retest $70,000.

Strategy, formerly MicroStrategy, launched STRC, a variable-dividend preferred stock, in late July 2025. The company adjusts its dividend rate in an effort to keep the shares near their $100 par value and uses most of the proceeds to buy more bitcoin. The instrument is central to Michael Saylor's bitcoin-treasury “flywheel.” If STRC remains below par for an extended period, it could weaken Strategy's ability to raise capital and purchase bitcoin.

On June 18, 2026, STRC fell to an intraday record low of $82.53 and closed at $88.59, a discount of more than 11% to its $100 par value. Bitcoin had fallen nearly 50% since STRC's launch, while the preferred stock's effective yield climbed above 12.9%. Peter Schiff criticized the model as tantamount to a Ponzi scheme, while Jesse Myers of The Smarter Web Company attributed the decline to short-term selling caused by leveraged liquidations.

Strategy has long raised funds through stock and debt offerings to accumulate Bitcoin. Its perpetual STRC preferred stock attracts capital with a high dividend, with the proceeds then used to buy Bitcoin. The instrument has no maturity date, but its sustainability could be undermined by the dividend burden, Bitcoin price volatility and a breakdown in financing markets.

In the week ending July 19, 2026, Strategy was estimated to have added about 7,000 Bitcoin after raising funds through STRC, though the actual amount raised has not been disclosed. Alexander Blume, CEO of investment adviser Two Prime, said investors may be underpricing the risk of a major market dislocation given STRC's 11.5% annualized yield, warning that there is “no free lunch” behind the high return.

Strategy uses its STRC perpetual preferred stock to raise capital, creating an ongoing funding channel for Bitcoin purchases. Its at-the-market program allows the company to issue additional shares depending on market conditions. STRC’s liquidity and market demand will directly affect Strategy’s ability to expand its Bitcoin holdings, as well as investors’ assessment of its financing ceiling and dilution risks.

The latest reports revised STRC’s Monday trading volume to $1.5 billion from an initial estimate of $1.16 billion and said it funded Strategy’s purchase of 11,707 Bitcoin, above the earlier estimate of 7,800. Trading volume could set another record on Tuesday, while Delphi Digital warned that the STRC financing model faces a $28 billion scale ceiling.

Strategy (MSTR) uses its perpetual preferred stock, Stretch (STRC), as a long-term financing vehicle, attracting capital through a relatively stable share price and dividend mechanism before deploying the proceeds into Bitcoin. The model can reduce the dilution pressure associated with frequent common-stock issuance while giving investors a gauge of whether the company can continue expanding its crypto holdings.

STRC recorded $333 million in trading value on Wednesday, its seventh-highest single-day volume since issuance, while moving by just $0.01 intraday, indicating stability despite heavy trading. Based on the amount raised that day, Strategy may have used the proceeds to buy more than 2,000 additional Bitcoin.

Strategy, the world's largest corporate holder of Bitcoin, launched perpetual preferred stock STRC in July 2025 to raise U.S. dollar funding through share issuance and buy more Bitcoin. STRC targets a price near its $100 par value, with its high dividend designed to attract income-focused investors while allowing the company to continue expanding its crypto holdings.

Strategy said STRC's annualized dividend rate would remain at 11.5% in April 2026, ending a run of seven consecutive increases since the product's launch. With STRC's market price gradually stabilizing and approaching its $100 par value, the company will not raise the rate this month but will continue using the stock as a fundraising vehicle for future Bitcoin purchases.