Strategy’s preferred stock STRC extended its decline for a second straight session, closing at $88.59 after falling as low as $82.50 intraday, as unusually heavy trading signaled continued pressure on the instrument.
Trading volume surged to about 10.7 million shares, nearly three times its typical daily range, marking one of the most active sessions on record for the stock. The prolonged move below its $90 issue price represents the longest stretch of weakness since its market debut.
What is driving the decline
STRC, formally known as the Variable Rate Series A Perpetual Stretch Preferred Stock, was launched at $90 in July 2025 with a structure designed to maintain a $100 par value through a variable dividend, currently set at 12.9% and adjusted monthly.
The structure depends in part on Strategy issuing additional shares when the stock trades above par to fund bitcoin purchases. With STRC now below par, the company has halted its at-the-market issuance program, limiting a key mechanism supporting both capital raising and bitcoin accumulation.
Signs of strain are becoming more visible across Strategy’s capital structure. Its common shares, MSTR, fell 4% to $112.53, hovering not far above a 52-week low of $104.17 and well below a high of $457.22. Weiss Ratings has assigned the stock a “C” rating with a Hold recommendation, citing mounting pressure on the business.
Shift in strategy and capital allocation
Strategy is now prioritizing liquidity and financial obligations over aggressive bitcoin accumulation. In a notable move, the company sold 32 bitcoin for about $2.5 million in May, marking its first sale since 2022. The proceeds were used to fund dividend payments tied to STRC, signaling a shift toward meeting cash commitments.
The company is also expected to focus in the near term on rebuilding U.S. dollar reserves and supporting preferred shareholders rather than expanding its bitcoin holdings during weaker market conditions.
According to TD Cowen, which maintained a Buy rating and a $400 price target on MSTR and related preferred shares, Strategy is evolving toward a more integrated financial framework. This approach consolidates dividend obligations, reserves, debt management, credit relationships, and bitcoin transactions under a unified goal of growing bitcoin exposure while maintaining flexibility.
Market backdrop adds pressure
Broader weakness in cryptocurrency markets has added to the strain. Bitcoin recently dropped to around $62,488, breaking key support levels and weighing on equities closely tied to its performance. Volatility in the underlying asset continues to influence sentiment around Strategy’s financial instruments.
As of June 14, 2026, the company held 846,842 bitcoin acquired at an average price of $75,656, alongside $1.1 billion in U.S. dollar reserves intended to service dividends and debt obligations.
Longer-term ambitions remain intact
Despite the current defensive posture, Strategy’s longer-term plans remain ambitious. Chief executive Phong Le has previously outlined a goal to raise more than $80 billion within a year through a mix of debt and equity to fund additional bitcoin purchases.
For now, however, the extended period of STRC trading below its launch price underscores a continued adjustment phase, as traders weigh the sustainability of the company’s financing model against a more challenging market environment.
For deeper context on bitcoin exposure and timing, explore our latest outlook in when is the best time to buy bitcoin.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
