MicroStrategy’s STRC preferred stock dropped toward $90 this week as Bitcoin (BTC) slid under $63,000, then clawed back toward its $100 par, repeating a pattern that has shadowed every major Bitcoin drawdown this year.
The move landed days before shareholders approved a shift to semi-monthly dividends, a change the company says should steady the share price and tighten trading around par
Why MicroStrategy’s STRC Keeps Tracking Bitcoin Strategy (Nasdaq: STRC) sells its Variable Rate Series A Perpetual Stretch Preferred Stock to fund Bitcoin purchases, paying an 11.5% annual dividend it has held unchanged for a fourth straight month. The stock is built to trade near $100, with the rate resetting to draw buyers in whenever it slips below par. That design has been tested repeatedly.
STRC fell below $95 on June 3 for the first time in three months, closing at $94.65 as Bitcoin dropped to $62,000 and liquidations topped $1.6 billion. By June 8 it traded around $93, after an intraday low near $90. The discount matters because MicroStrategy issues fresh STRC mainly when shares sit at or above par, and it has paused those sales before when the gap widened.