Strategy's preferred stock STRC, used to fund bitcoin purchases, hit a record low on Wednesday, closing at $89 — about 11% below its $100 par value. This marks the worst level since the security launched in July 2025 and directly constricts one of the company's key funding channels.
How the Discount Stalls Issuance
STRC is a variable-rate perpetual preferred stock with an effective dividend yield of 12.9%, adjusted monthly to keep its price near $100. When STRC trades above par, Strategy issues new shares through an at-the-market (ATM) program and uses the cash to buy bitcoin. With the stock now below par, that program has been paused, removing a crucial lever for ongoing accumulation. STRC is typically the most actively traded of Strategy's preferred shares.
First-Ever Bitcoin Sale to Cover Dividends
The dividend obligation has forced an unusual move. On June 1, Strategy disclosed that it sold 32 bitcoin for about $2.5 million in late May to fund STRC distributions. This is the first sale since the company began accumulating bitcoin in 2022, rattling a market accustomed to Chairman Michael Saylor's pledge never to sell. Last week, the company said it had built a dedicated U.S. dollar reserve of $1.1 billion to cover preferred dividends and debt, while still buying 1,587 bitcoin through separate common stock sales.
Portfolio Size and Market Reaction
Strategy now holds approximately 846,842 bitcoin, roughly 4% of the total supply that will ever exist, making it the largest corporate holder. Bitcoin has traded around $64,000–$65,000 this week, and Strategy's common stock (MSTR) fell about 5% on Wednesday to $116.52. STRC has dipped below par before during bitcoin volatility, but the new low combined with the first-ever bitcoin sale has raised fresh questions about the sustainability of the company's funding model.