Strategy’s Bitcoin-backed preferred stock falls below par value for the first time as BTC slump pressures dividends and share stability.
Strategy’s preferred stock ($STRC) dropped to an all-time low of $88.50, closing at $89, below its $100 par value and $90 IPO price. The decline marks the first breach of its initial offering level amid a broader selloff in the security.
The stock, designed to pay a 12.9% dividend and maintain price stability through monthly adjustments, has struggled as Bitcoin ($BTC) hovers near $64,000. Analysts cite concerns over dividend sustainability after Strategy sold 32 BTC for $2.5 million in May to fund distributions.
Launched in July 2025 to finance Bitcoin purchases, STRC’s decline reflects broader market pressures and doubts about its high-yield structure. The stock’s breakdown below par raises questions about its long-term viability.