The decline halts Strategy’s ability to issue new shares above par, limiting its cash flow for bitcoin purchases.
Strategy’s STRC preferred stock fell to a record low of $89, trading below its $100 par value for the first time since its July 2025 launch. The drop has paused the company’s at-the-market share sales, a key funding source for bitcoin acquisitions.
STRC, which pays a variable dividend currently at 12.9%, is designed to trade near $100. Its decline follows Strategy’s first-ever bitcoin sale earlier this month to cover preferred dividends, raising concerns about its funding strategy.
The stock’s weakness constrains Strategy’s ability to raise capital, potentially slowing its bitcoin accumulation. The company had relied on above-par share sales to finance purchases, but the pause may limit future buying activity.