CoinDesk
Strategy's STRC preferred stock closed at $89 on Wednesday, its lowest level since the Variable Rate Series A Perpetual Stretch Preferred launched in July 2025. That puts the share price about 11% below its roughly $100 par value, weakening one of the company's primary funding vehicles for its bitcoin treasury. STRC pays a variable monthly dividend — currently an effective 12.9% — that Strategy adjusts in part to keep the stock anchored near par.
Why it matters
The slide has a mechanical consequence: because STRC now trades below par, Strategy has paused issuing new shares through its at-the-market program, removing one of the levers it relies on to keep accumulating bitcoin. STRC is typically the most actively traded of Strategy's preferred series, so the freeze narrows the funding stack the company leans on most. The same instrument is also the one whose dividend obligations pushed Strategy to sell bitcoin for the first time since it began accumulating in 2022. On June 1 the company disclosed it had sold roughly 32 coins for about $2.5 million in late May to fund STRC distributions — a move that rattled a market anchored to Chairman Michael Saylor's pledge never to sell.
Market impact
Strategy last week said it had grown a dedicated U.S. dollar reserve to $1.1 billion to cover preferred dividends and debt, while still buying 1,587 bitcoin through separate sales of its common stock. The company still holds about 846,842 bitcoin — roughly 4% of the supply that will ever exist — making it the largest corporate holder. STRC has dipped below par before, usually during stretches of bitcoin volatility; BTC has held around $64,000–$65,000 this week, and MSTR fell about 5% on Wednesday to $116.52. The question for the next print is whether STRC can claw back toward par fast enough for the ATM to reopen, or whether the funding tap stays closed into a softer tape.
Frequently asked questions
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What is Strategy's STRC preferred stock?
STRC is Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, launched in July 2025. It pays a variable monthly dividend — currently an effective 12.9% — that the company adjusts in part to keep the share price anchored near its $100 par value.
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Why does Strategy use STRC to buy bitcoin?
When STRC trades above its $100 par value, Strategy issues new shares through an at-the-market program and uses the proceeds to buy bitcoin. STRC is typically the most actively traded of Strategy's preferred series, making it the company's primary preferred-stock funding channel.
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Why has Strategy paused STRC share sales?
STRC closed at $89 on Wednesday, about 11% below par. Because the stock now trades below $100, Strategy has paused issuing new shares through its at-the-market program, removing one of the levers it relies on to keep accumulating bitcoin.
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When did Strategy sell bitcoin for the first time?
Strategy disclosed on June 1 that it had sold roughly 32 bitcoin for about $2.5 million in late May to fund STRC dividend distributions — its first bitcoin sale since it began accumulating in 2022.
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How much bitcoin does Strategy still hold?
Strategy holds about 846,842 bitcoin, roughly 4% of the supply that will ever exist, making it the largest corporate holder. The company also reported a dedicated $1.1 billion U.S. dollar reserve to cover preferred dividends and debt.
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