Strategy (MSTR) stock dropped about 5% on Wednesday to $116.52 as its STRC preferred stock hit a record low of $89, falling 11% below its $100 par value.
STRC, officially the Variable Rate Series A Perpetual Stretch Preferred Stock, launched in July 2025. It was designed to stay close to $100 by paying a high variable dividend — currently at a 12.9% effective rate — adjusted monthly.
The stock hit a daily low of $88.50 on Wednesday before closing at $89, its lowest recorded non-adjusted close since launch. That puts it below its IPO price of $90.
The drop matters because of how Strategy funds its bitcoin buying. When STRC trades above $100, the company issues new shares through an at-the-market program and uses the proceeds to buy bitcoin. With the stock now trading at a discount, that program has been paused.
STRC is Strategy’s most actively traded preferred stock, with $417.5 million in volume on Wednesday alone.
The pressure from STRC is not just about fundraising. In late May, Strategy sold 32 bitcoin for approximately $2.5 million to cover STRC dividend distributions. That marked the first time the company had sold any bitcoin since it began accumulating in 2022.
The move drew attention because Chairman Michael Saylor had long pledged never to sell. While analysts at Benchmark and TD Cowen have pushed back on fears of a broader “death spiral,” the sale was a notable departure from Strategy’s stated playbook.
Strategy holds approximately 846,842 bitcoin — roughly 4% of the total supply that will ever exist — making it the largest corporate bitcoin holder in the world.
Last week, the company said it had built a dedicated U.S. dollar reserve of $1.1 billion to cover preferred dividends and debt obligations, while still purchasing 1,587 bitcoin through separate common stock sales.
Bitcoin has been trading in the $64,000–$65,000 range this week, around the time of new Federal Reserve Chair Kevin Warsh’s first FOMC meeting. The Fed voted to hold interest rates steady on Wednesday.
STRC has traded below par before, typically during periods of bitcoin price volatility, but Wednesday’s close appears to be the lowest on record.
For comparison, SATA — a preferred stock created by Strive to mirror Strategy’s STRC — was trading above $99 on Wednesday and offering a 13.69% rate.
Strategy’s other preferred stocks include Stride (STRD), Strike (STRK), and Strife (STRF). STRC sits below STRF in the capital structure but above STRD, STRK, and common MSTR holders in payout priority.
Saylor described STRC’s launch as the company’s “iPhone moment” when it debuted last year.
As of Wednesday’s close, MSTR common stock sat at $116.52, down roughly 5% on the day.
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