Strategy's variable-rate perpetual preferred stock STRC closed at $89.15 per share on June 17, slipping more than 11 % below its $100 par value.
Price Movement and Dividend Context
The $89.15 settlement reflects a steep discount that challenges the original intent of STRC to trade near its $100 face value. Investors who purchased the security close to par now face a mark‑to‑market loss comparable to an entire year of the current 11.5 % annual dividend. The widening gap between market price and par value signals that the variable dividend alone cannot sustain demand amid volatile crypto markets.
Investor Sentiment and Strategic Options
Euro Pacific chief economist Peter Schiff warned on X that the structure resembles a trap for risk‑averse retirees, amplifying doubts about the instrument’s durability. Analysts on June 18 reported that the market is pricing in higher yields, reflecting eroding confidence in STRC’s dividend stability and Strategy’s plan to fund future Bitcoin purchases. If Strategy lifts the yield toward 13 %, the preferred stock might regain traction, but the higher payout would also raise the company's cost of capital.