Strategy’s strc closed at $89 on Wednesday, its lowest level since the preferred stock launched in July 2025. The move leaves the Variable Rate Series A Perpetual Stretch Preferred Stock about 11% below the roughly $100 level it is designed to hold.
For Strategy, that drop tightens the preferred-stock channel it has used to help fund bitcoin purchases. The stock’s monthly variable dividend is currently at an effective rate of 12.9%, keeping pressure on the pricing mechanism even as the company pauses new issuance through its at-the-market program.
Strategy's $100 target slips
$89 is the latest sign that strc is struggling to stay near par. Strategy adjusts the dividend rate monthly to keep the stock around $100, but the recent move shows the structure is still vulnerable when bitcoin weakens and preferred demand softens at the same time.
When strc trades above $100, Strategy issues new shares through an at-the-market program and uses the cash to buy bitcoin. With the stock now below par, that funding lane is shut for the moment, and the company has paused the program until the price gets back closer to target.
Michael Saylor's bitcoin financing
32 bitcoins sold for about $2.5 million in late May show how far Strategy has already been willing to go to support strc distributions. The company disclosed that sale on June 1, saying the cash helped fund preferred-stock payouts after dividend obligations started to bite into its capital structure.
$1.1 billion in a dedicated U.S. dollar reserve added another layer of support last week, but it did not stop strc from sliding to a record low. Strategy also said it was still buying 1,587 bitcoin through separate sales of its common stock, a reminder that the company is leaning on multiple financing channels at once.
Bitcoin at $64,000 to $65,000
$64,000 to $65,000 in bitcoin prices this week kept the backdrop uneasy for Strategy’s funding model. The company holds about 846,842 bitcoin, roughly 4% of the supply that will ever exist, and the preferred-stock move matters because it sits inside that accumulation strategy rather than outside it.
5% was the drop in Strategy’s common stock, MSTR, on Wednesday to $116.52, adding another sign that the market is repricing the company’s capital structure as strc trades below par. Michael Saylor’s firm now faces a narrower path between keeping preferred payouts current and preserving a low-cost way to add bitcoin, and that gap is where the stress is showing up first.
