Strategy Preferred STRC Posts Third-Lowest Close Since Listing Amid Dividend Sustainability Concerns

Strategy's dividend-paying preferred stock STRC posted its third-lowest close since listing as Bitcoin remained weak and concerns mounted over the sustainability of its dividend.

CoinDesk reported that STRC closed at $91.79 on June 15. That was its third-lowest close since the security was listed in July 2025. STRC was offered at about $90, and its lowest close was $88.60 in July 2025.

STRC was designed to trade near its $100 par value. But it has stayed below $100 for the past several months and has not recovered to par since its ex-dividend date on May 15.

CoinDesk cited Bitcoin weakness as the first reason for STRC's decline. STRC has historically shown a high correlation with Bitcoin, which was trading near $65,000, down about 50% from its record high in October 2025.

Concerns over dividend sustainability are also weighing on the shares. Strategy recently used part of its cash and cash equivalents to repay $1.5 billion of convertible debt. As a result, funds available to support STRC's dividend have fallen to about seven months, the report said. Before the repayment, the company held enough cash to maintain the dividend for as long as 24 months.

Competition from rival products has also been cited as a factor behind investor outflows. SATA, the preferred stock issued by Bitcoin treasury company Strive, is trading near its $100 par value and offers an annualized yield of about 13%, above STRC's 11.5%.

SATA has also attracted investor interest because it pays dividends daily and carries no debt, giving it higher priority in the capital structure. SATA was trading at $99.99, while STRC remained in the $91 range. The price gap between the two has widened to a record.

Market participants also say STRC may need to raise its dividend yield further to return to par. Based on its current share price, STRC's annualized dividend yield is about 12.5%. Restoring investor demand may require an additional increase of about 1 percentage point.