How STRC lost its par: The timeline behind Strategy's preferred-stock meltdown
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- STRC dropped to a low of $83 intraday on June 18, 17% below its $100 par target and the lowest level since the security debuted in July 2025, before closing at $88.59.
- Strategy repurchased $1.5 billion of its 2029 convertible notes at an 8% discount on May 15, using a dollar cash reserve that later shrank to $871 million — roughly six months of STRC dividend coverage versus the company's previously stated 24-month target.
- Strategy sold 32 BTC on June 1 — its first bitcoin sale since 2022 — which sent MSTR common stock down 5.9% the same day bitcoin fell as low as $70,500.
- Strategy holds 846,842 BTC acquired at an average cost of $75,656, leaving the company sitting on an unrealized loss of approximately $11.14 billion at bitcoin prices around $62,500.
- Strive Asset Management announced on May 14 it would pay daily dividends on its competing SATA preferred security, which offers a 13% yield versus STRC's 11.5% annualized payout.
- MSTR common stock now trades around $112, down roughly 80% from its November 2024 all-time high, while the two most recent capital raises were viewed as dilutive.
Why it matters: STRC's slide below par undermines the core mechanism that lets Strategy raise capital efficiently through ATM offerings to fund its 11.5% dividend. With a cash buffer cut to six months of coverage (from a planned 24), $11.14 billion in unrealized bitcoin losses, and a higher-yielding competitor in Strive's SATA, STRC holders face a direct question about whether Strategy's preferred-stock structure can survive the bitcoin downturn intact.
