What is Strategy's STRC preferred stock?

STRC is the Variable Rate Series A Perpetual Stretch Preferred Stock, issued by Strategy in July 2025. It pays a 12.9% effective dividend distributed semi-monthly and was designed to maintain a stable price around $100 par through monthly rate adjustments.

Why did STRC drop below $90 on Wednesday?

STRC closed at $89 with a daily low of $88.50, the lowest non-adjusted close on record. Market watchers note the preferred tends to dip during periods of bitcoin volatility, and BTC has held around $65,000 heading into the Federal Reserve's FOMC meeting.

How is Strive's SATA preferred different from Strategy's STRC?

SATA is a competing preferred stock launched by Strive to mirror Strategy's STRC. On Wednesday, SATA was trading above $99 and offering a 13.69% effective rate, while STRC sat at $89 — widening the spread between the two products.

Did Strategy actually sell bitcoin to fund STRC dividends?

In late May, Strategy sold 32 BTC for roughly $2.5 million to fund distributions on STRC. It was the first time the company had liquidated bitcoin since it began accumulating in 2022, fueling "death spiral" concerns that Benchmark and TD Cowen have publicly rebutted.

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STRC preferred stock slides to $89, lowest close on record

STRC is a 12.9% variable-rate preferred built to hold $100 par. The drop below $90 forces Strategy to pause its at-the-market share issuance — and amplifies the 'death spiral' debate around the…

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Strategy's "Stretch" preferred stock (STRC) closed at $89 on Wednesday, hitting a daily low of $88.50 and posting the lowest non-adjusted close on record for the variable-rate instrument, according to Yahoo Finance. STRC was designed in July 2025 to trade near $100 par by paying a 12.9% effective dividend that adjusts monthly — the stock acts as a high-yield digital credit and is Strategy's most liquid preferred, with $417.5 million in volume on the day. Wednesday's print is one of the few times the preferred has dipped below its $90 IPO price.

Why it matters

STRC is a bitcoin-backed equity issued by Strategy to fund BTC acquisitions. When the stock trades above par, Strategy issues new shares to buy more bitcoin; with the preferred now at an 11% discount, that at-the-market program is paused. Market watchers note the stock tends to dip during periods of bitcoin volatility — and BTC has been holding around $65,000 heading into the Federal Reserve's FOMC meeting, where new Chair Kevin Warsh voted to keep rates steady. Stretch sits senior to Strategy's other preferreds (STRD, STRK) and common MSTR, but junior to STRF and debt, making it the primary funding vehicle exposed to the price-discovery gap.

Market impact

The discount is dragging on MSTR itself, which traded at $116.52 — down about 5% on the day. Saylor called Stretch's launch the company's "iPhone moment," but the perpetual is now testing the limits of that framing. Strive's competing SATA preferred, designed to mirror STRC, is trading above $99 and offering a 13.69% rate, widening the spread between the two products. Late last month, Strategy sold 32 BTC for roughly $2.5 million to fund STRC distributions — the first liquidation since its 2022 accumulation began. Analysts at Benchmark and TD Cowen have publicly rebutted "death spiral" fears, but the record-low close adds pressure to that argument heading into the next dividend distribution window.

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Frequently asked questions

What is Strategy's STRC preferred stock?

STRC is the Variable Rate Series A Perpetual Stretch Preferred Stock, issued by Strategy in July 2025. It pays a 12.9% effective dividend distributed semi-monthly and was designed to maintain a stable price around $100 par through monthly rate adjustments.
Why did STRC drop below $90 on Wednesday?

STRC closed at $89 with a daily low of $88.50, the lowest non-adjusted close on record. Market watchers note the preferred tends to dip during periods of bitcoin volatility, and BTC has held around $65,000 heading into the Federal Reserve's FOMC meeting.
What happens to Strategy's bitcoin buying when STRC trades below par?

When STRC trades above par, Strategy issues new shares to buy more bitcoin. With the preferred now at an 11% discount to par, Strategy has paused that at-the-market share issuance program.
How is Strive's SATA preferred different from Strategy's STRC?

SATA is a competing preferred stock launched by Strive to mirror Strategy's STRC. On Wednesday, SATA was trading above $99 and offering a 13.69% effective rate, while STRC sat at $89 — widening the spread between the two products.
Did Strategy actually sell bitcoin to fund STRC dividends?

In late May, Strategy sold 32 BTC for roughly $2.5 million to fund distributions on STRC. It was the first time the company had liquidated bitcoin since it began accumulating in 2022, fueling "death spiral" concerns that Benchmark and TD Cowen have publicly rebutted.

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