Strategy’s STRC preferred stock fell below $83 on Thursday, about 17% under the $100 par value it was built to hold, its lowest level since the security debuted in July 2025. The drop capped a five-week slide and produced one of the sharpest selloffs the young market for crypto-linked preferred equity has seen. STRC is issued by Strategy (MSTR), the bitcoin treasury company run by Michael Saylor, and pays an annualized 11.5% dividend. A bitcoin treasury company is a publicly traded firm whose core business is buying and holding bitcoin on its balance sheet, usually funded by issuing new stock and debt. Keeping STRC near par matters because it lets Strategy raise cash efficiently through at-the-market stock sales to fund that payout, and with bitcoin in a bear market that mechanism came under strain.
Key takeaways
- STRC fell as low as $82.50 on Thursday, June 18, roughly 17% below its $100 par and its weakest since launch.
- A $1.5 billion convertible-note buyback cut Strategy’s dividend reserve from about 24 months of coverage to roughly six, before the company rebuilt it to $1.1 billion.
- Strive CEO Matt Cole called the move a “leverage liquidation event,” not a credit deterioration, as rival product SATA also dropped before rebounding.
- Strategy holds 846,842 BTC at an average cost of $75,656, an unrealized loss near $11.14 billion at current prices.
Published: June 21, 2026 09:00 UTC
What pushed STRC below par
The slide was the product of management decisions stacked on top of a falling bitcoin price. STRC closed at $100 on May 14 with bitcoin above $80,000, but it had held that level only in the run-up to its monthly ex-dividend date rather than consistently through the month. The same day, Strive Asset Management said it would pay daily dividends on its competing security SATA, which offers a higher 13% yield.
On May 15, Strategy announced a $1.5 billion buyback of its 2029 convertible notes at an 8% discount, part-funded from a dollar cash reserve set up in late 2025 to backstop dividends and debt. By May 26 that reserve had fallen to $871 million, leaving roughly six months of STRC dividend coverage against a previously stated target of about 24 months. A convertible note is a form of debt that can later convert into company stock, and retiring it early consumed cash the reserve was meant to protect.
The pressure built from there. Strategy sold 32 BTC on June 1, its first bitcoin sale since 2022, to signal it could raise cash if needed. Bitcoin fell below $60,000 on June 5 for the first time since October 2024, dragging STRC to around $90. Shareholders approved a shift to twice-monthly dividends on June 8, and the company rebuilt its reserve to $1.1 billion by June 15. None of it stopped STRC from breaking below $83 intraday on June 18.
Why it matters
The damage reaches beyond a single ticker because Strategy’s funding model depends on STRC trading near par. When the preferred stock holds $100, the company can issue more of it at full value and recycle the proceeds into bitcoin and dividend payments. A price 17% below par raises the real cost of that capital and slows the flywheel that built an 846,842-BTC treasury. Strategy’s common stock now trades near $112, down roughly 80% from its November 2024 record, and the firm’s two most recent raises drew pushback as dilutive. The broader market for crypto-linked yield products is watching whether high-yield preferreds can hold their pegs through a downturn.
What comes next
Strive CEO Matt Cole, whose SATA fell below $93 before recovering to $97, framed Thursday as forced selling by leveraged investors rather than a sign of weak credit. “What happened today was a leverage liquidation event, not a deterioration in underlying credit quality,” he wrote on X, adding that dividend reserves remained intact. The sharp rebound from intraday lows suggests buyers stepped in as prices fell. The open question for investors is whether STRC can climb back to par, an outcome that hinges largely on whether bitcoin stabilizes after a stretch that has also rattled the wider market.
Frequently asked questions
What is Strategy’s STRC?
STRC is a dividend-paying preferred stock issued by Strategy, the bitcoin treasury company led by Michael Saylor. It is designed to trade near a $100 par value and pays an annualized 11.5% yield, giving investors a high-yield, lower-volatility way to hold exposure tied to the company.
Why is STRC trading below its $100 par value?
A falling bitcoin price, a $1.5 billion debt buyback that drained Strategy’s cash reserve, and competition from Strive’s higher-yielding SATA all weighed on STRC. A wave of leveraged investors selling into margin calls then pushed it below $83 on June 18.
Does the selloff mean Strategy is in financial trouble?
Strive CEO Matt Cole described the drop as a leverage liquidation rather than a credit event, and Strategy says its dividend reserves are intact at $1.1 billion. Still, the company carries an unrealized loss near $11.14 billion on its bitcoin, and a sustained sub-par STRC price would make raising new capital more expensive.
