Strategy's STRC Preferred Stock Falls to Record Low, Pausing Bitcoin Purchases

Strategy's STRC preferred stock has seen a notable decline, closing at $89 on June 18, 2026. This price marks the lowest level since the stock's launch in July 2025 and positions it 11% below its intended par value of $100. The downturn has led Strategy to pause its at-the-market program, which it uses to issue new shares and raise capital for purchasing bitcoin.

The STRC stock, specifically designed to pay a variable dividend currently set at an effective rate of 12.9%, is a key financial instrument for Strategy’s bitcoin acquisitions. When trading above par, STRC enables the company to issue new shares for cash, which is then allocated for bitcoin purchases. However, with the stock now below par, this crucial funding pathway is significantly restricted.

This development coincides with Strategy's first sale of bitcoin to fund its preferred stock dividends, a notable departure from its previous stance of not selling bitcoin since accumulating it in 2022. On June 1, 2026, Strategy disclosed it had sold 32 bitcoins for approximately $2.5 million in late May, stirring concerns in a market accustomed to chairman Michael Saylor's firm commitment to holding bitcoin.

Last week, Strategy reported an increase in its U.S. dollar reserves to $1.1 billion, aimed at covering preferred dividends and debt obligations, while simultaneously acquiring 1,587 bitcoins through the sale of common stock. The company currently holds around 846,842 bitcoins, representing about 4% of the total supply. While STRC has dipped below par before, this typically occurs during periods of bitcoin price volatility, which remains present with bitcoin prices fluctuating between $64,000 and $65,000 recently.

As the market observes Strategy's actions, the implications of the stock's performance on its operational capacity and bitcoin strategy are key points to monitor in the upcoming weeks. Stakeholders are particularly interested in whether the downturn in STRC affects the company's overall bitcoin acquisition strategy and market sentiment.