Strategy’s preferred stock STRC has continued to trade away from its intended anchor, with its market price falling more than 11% below the $100 target par value. The gap has exposed pressure on the company’s capital flywheel model, which relies on STRC financing to support additional Bitcoin purchases.
The source notes that the dividend rate on STRC has been raised to 11.5%, but the adjustment has not restored the price to its target level. For a preferred stock, a sustained discount to the target par value can weaken confidence in the financing instrument itself and in the structure built around it.
Market concerns are focused on Strategy’s cash liquidity and its ability to meet dividend obligations. The article also points to concern that the company may face pressure to sell Bitcoin in order to fulfill those obligations, a development that would place further scrutiny on the stability of its overall capital structure.