Strategy Preferred STRC Falls to Record Low $89 as Bitcoin Weakness, Dividend Concerns Weigh

Strategy’s preferred stock STRC fell to a record low of $89, deepening losses as weaker Bitcoin prices and concern about the sustainability of its dividend weighed on the shares.

The Block reported on June 17 that STRC fell as low as $88.50 intraday before closing at $89. That was its lowest level in the past 52 weeks and its lowest closing price since the security was listed in July 2025.

STRC is Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, issued in July 2025 to raise funds for Bitcoin purchases. The security was designed to offer a high dividend yield while keeping its price near $100.

Its effective dividend yield is now about 12.9%. STRC pays cash dividends twice a month and resets its dividend rate monthly in an effort to keep the shares trading around $100.

The stock has recently fallen well below par as Bitcoin weakened and investor concern over the durability of the payout increased.

Strategy had been running an at-the-market program that allowed it to issue new shares and buy more Bitcoin when STRC traded above $100. With the stock now changing hands at a discount, that program has been suspended.

Traders have pointed to soft Bitcoin prices as a key driver of STRC’s decline. Bitcoin has been moving sideways around $65,000, while investor sentiment has weakened ahead of the Federal Open Market Committee meeting on June 17.

Concern also grew after investors learned that Strategy sold 32 Bitcoin worth about $2.5 million in May to fund STRC dividend payments. It was the company’s first Bitcoin sale since it began accumulating the cryptocurrency in 2022.

Still, Wall Street analysts including Benchmark and TD Cowen said the sale was unlikely to trigger a so-called death spiral.

SATA, a similarly structured preferred stock launched by Strive, traded above $99 on June 17. Its dividend yield was about 13.69%, higher than STRC’s.

At the time of STRC’s launch, Michael Saylor called it “Strategy’s iPhone moment.”

Strategy’s common stock, MSTR, traded at $116.52 on the same day, down about 5%.