MicroStrategy Preferred Stock STRC Drops Below $95 as Bitcoin Slumps to $62,000
MicroStrategy's perpetual preferred stock STRC fell below $95 for the first time in three months, closing at $94.65 on June 3, 2026, as Bitcoin tumbled to $62,000 amid over $1.66 billion in liquidations. STRC is designed with a $100 par value and a variable yield around 11.5%, targeting income investors seeking indirect Bitcoin exposure. The drop below par challenges the instrument's capital-raising efficiency, as issuing new shares becomes less attractive. This weakens Strategy's ability to fund further Bitcoin purchases. The decline coincided with broader market stress and a small Bitcoin sale by Strategy for dividend coverage, denting the 'never sell' narrative. If STRC stays below par, the company may need to raise dividends, increasing cash burn and accelerating Bitcoin sales. The upcoming shareholder vote on dividend frequency adds further uncertainty.
Key facts
- STRC closed at $94.65, below $95 for the first time in three months.
- Bitcoin dropped to $62,000 with over $1.66B in liquidations.
- STRC's below-par price makes new issuance for Bitcoin purchases less attractive.
- MicroStrategy sold a small amount of Bitcoin for the first time since 2022 to fund dividends.
- Upcoming shareholder vote on dividend schedule adds uncertainty to STRC's stability.