Strategy’s Dividend Crypto Stock Plunges Toward Historic Lows — Here’s Why

Strategy’s bitcoin-backed preferred stock continues to trade well below its intended par value, weighed down by concerns around dividend sustainability and rising competition from Strive’s SATA offering.

Shares of Strategy’s (MSTR) income-focused preferred security, STRC, closed at $91.79 on Tuesday, marking its third-lowest finish since launching in July 2025, as weaker bitcoin prices and balance sheet concerns pressured sentiment.

The only lower closes came later that same month, when STRC dipped to a low of $88.60. The security debuted at around $90 and was structured to trade near its $100 par value. However, it has remained below that level for an extended period and has not reached par since May 15, the most recent ex-dividend date.

Typically, STRC traded close to $100 ahead of ex-dividend dates—the cutoff after which new buyers no longer qualify for the next payout. After going ex-dividend, the price would usually drop by roughly the dividend amount before gradually rebounding toward par. However, on June 15, the stock failed to recover back to its target level.

Multiple factors appear to be driving the ongoing weakness.

First, STRC has historically moved in line with bitcoin, which remains under pressure, trading near $65,000 and still about 50% below its October peak.

Second, investors are increasingly concerned about dividend coverage. After using part of its cash reserves to repay $1.5 billion in convertible debt, Strategy now has roughly seven months of dividend coverage remaining, down from about 24 months prior to the repayment.

At the same time, investor demand has shifted toward a competing product from Strive (ASST). Its bitcoin-backed preferred security, SATA, continues to trade close to its $100 par value while offering a higher annualized yield of around 13%, compared to STRC’s 11.5%.

SATA also distributes dividends daily instead of on a bi-monthly basis. Additionally, Strive carries no debt, placing SATA at the top of its capital structure without obligations to convertible debt holders—an advantage that may appeal to income-focused investors.

As a result, the valuation gap between the two securities has widened significantly. STRC is currently trading at roughly an $8.20 discount to SATA, the largest spread on record, with SATA priced at $99.99.

Based on its current payout and market price, STRC offers an annualized yield of approximately 12.53%. This suggests the market may be signaling that its dividend needs to increase by about 100 basis points to restore demand and push the stock closer to its intended $100 par value.