STRC Preferred Stock Drops Below Par Amid Bitcoin Market Challenges

On June 20, 2026, Strategy's preferred stock, identified as STRC, dropped to a low of $83, substantially below its intended par value of $100. This decline marked a 17% reduction from its target and represented the lowest price since the stock's debut in July 2025. Various factors contributed to this downturn, including a recent buyback of convertible notes at an 8% discount, increased competition from Strive Asset Management's daily dividend offerings on a rival product, and a bear market for bitcoin, which affected investor sentiment.

The timeline of events leading to STRC's decline began on May 14, when STRC maintained its $100 price ahead of its monthly ex-dividend date while bitcoin traded above $80,000. However, bitcoin prices had already been on a downward trajectory since reaching a record of $126,000 in October. Investors noticed that STRC struggled to sustain its price around $100 outside the proximity of the ex-dividend date, leading to growing concerns.

• May 15: Strategy announced a repurchase of $1.5 billion in convertible notes, funded in part by a cash reserve intended for dividend payments. Bitcoin prices fell to $78,000.
• May 18: Despite declining bitcoin values, Strategy purchased 24,869 BTC.
• May 26: Strategy confirmed its cash reserve had diminished to $871 million after financing the bond buyback, providing only six months of STRC dividend coverage.
• June 1: Strategy sold 32 BTC, its first sale since 2022, amid heavy selling pressure with bitcoin dropping to approximately $71,286.
• June 5: Bitcoin closed below $60,000, prompting STRC to fall to $93.40.
• June 8: Shareholders approved the shift to a semi-monthly dividend payment schedule.
• June 15: Strategy made further BTC purchases and reported a rise in cash reserves to $1.1 billion.
• June 18: STRC fell below $83, closing at $88.59, as bitcoin prices resumed their slide.

The decline in STRC stock not only highlights challenges faced by Strategy, including a large unrealized loss on their bitcoin holdings and dilutive capital raises, but also calls into question the health of financial products tied to a downward trending bitcoin market. As Strive's CEO Matt Coles noted, market movements have been largely driven by leveraged liquidations instead of weakening credit fundamentals.

The mixed results of recent decisions leave investors questioning whether STRC can rebound to its par value of $100 amidst ongoing bitcoin price struggles and competitive pressures from products like Strive's SATA.