Summary
- Strategy’s key funding vehicle, its STRC preferred stock, has fallen to a record low of $89, weakening a major channel the company uses to raise cash to buy bitcoin.
- Because STRC now trades below its $100 par value, Strategy has paused issuing new shares through its at-the-market program, limiting its ability to keep adding to its bitcoin holdings.
- The drop in STRC comes after Strategy sold bitcoin for the first time to fund preferred dividends.
A preferred stock that Strategy (MSTR) uses to help fund its bitcoin buying has fallen to a record low, constricting one of the company’s funding channels.
Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, closed at $89 on Wednesday, its lowest level since it introduced in July 2025.
That is about 11% below the roughly $100 the stock is designed to hold. A preferred stock is a class of equity that pays a fixed dividend and ranks ahead of common shares in payout order. STRC pays a variable dividend, currently at an effective rate of 12.9%, adjusted monthly to keep its price near $100.
Traders keep track of this discount because of how Strategy uses the stock.
When STRC trades above its $100 par, the company issues new shares through an at-the-market program, selling stock straight into the market, and uses the cash to buy bitcoin. With the stock now below par, Strategy has paused that program, removing one of the levers it relies on to keep accumulating. STRC is typically the most actively traded of its preferred shares.
