Strategy’s STRC Preferred Stock Falls to Record Low Below Par Value

Here’s a paraphrased version in a clear financial-news style:

The decline has temporarily halted Strategy’s ability to sell shares above par, a mechanism the company uses to finance bitcoin purchases. The same preferred stock has also contributed to the firm’s first bitcoin sale this month due to its dividend obligations.

A preferred equity instrument used by Strategy (MSTR) to fund its bitcoin accumulation has dropped to a record low, tightening a key funding channel for the company.

Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) closed at $89 on Wednesday, its lowest level since its launch in July 2025.

This places the stock roughly 11% below its intended $100 par value. Preferred shares typically pay fixed dividends and take priority over common equity in payout order. STRC instead carries a variable dividend, currently around 12.9%, which is adjusted monthly in an effort to keep the price anchored near $100.

Market participants closely monitor deviations from par because of Strategy’s capital strategy. When STRC trades above $100, the company issues new shares through an at-the-market program, raising proceeds that are used to purchase bitcoin. With the stock now below par, that issuance program has been paused, removing one of Strategy’s key tools for expanding its bitcoin holdings. STRC is also among the most actively traded of the company’s preferred securities.

The weakness also comes at a sensitive time for the instrument. Dividend obligations tied to STRC prompted Strategy to sell bitcoin for the first time since it began accumulating the asset in 2022. The company disclosed on June 1 that it had sold 32 BTC for roughly $2.5 million in late May to meet STRC payout requirements, a move that surprised a market long accustomed to Chairman Michael Saylor’s commitment to never sell bitcoin.

Earlier this month, Strategy said it had built a $1.1 billion U.S. dollar reserve to support preferred dividends and debt obligations, while still adding 1,587 bitcoin through common stock issuance.

The company remains the largest corporate holder of bitcoin, with approximately 846,842 BTC, representing about 4% of the total supply that will ever exist.

STRC has previously traded below par during periods of bitcoin volatility. Bitcoin has recently held in the $64,000–$65,000 range, while Strategy’s common shares (MSTR) fell about 5% on Wednesday to $116.52.