MicroStrategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (ticker STRC) fell to a record low of $89 on Wednesday, marking the deepest dip since its debut in July 2025.
Preferred‑Stock Price Slump
The $89 closing price sits about 11 percent beneath the $100 target that the instrument strives to maintain. STRC carries a variable dividend that currently translates to an effective 12.9 % yield, recalibrated each month to keep the price near its $100 benchmark. Investors watch this discount closely because the stock’s price determines whether MicroStrategy can launch new shares through its at‑the‑market program.
Consequences for Bitcoin Buying
When STRC trades above its $100 par value, MicroStrategy issues additional preferred shares, sells them directly on the market, and directs the proceeds toward purchasing additional bitcoin. The recent plunge below par forced the company to suspend that financing channel, removing a key lever for expanding its crypto holdings. This development follows a June 1 disclosure that the firm sold 32 bitcoin—approximately $2.5 million—to meet STRC dividend obligations, the first sale since it began accumulating the digital asset in 2022.