Strategy's STRC preferred stock, designed to trade near $100, fell into the low $80s this week, far below its target. The drop raises fresh questions about the company's complex plan to fund Bitcoin purchases through Wall Street-style securities. CEO Michael Saylor had previously claimed that AI helped design STRC, which critics now mock as an 'AI-engineered' security failing under market pressure. STRC is a perpetual preferred stock that allows Strategy to adjust its dividend rate monthly to support its price around $100. The decline may force higher dividends, increasing capital costs and hindering future issuance. While no immediate Bitcoin sales are confirmed, the pressure could lead to more common stock dilution or reduced Bitcoin buying capacity, challenging Saylor's core accumulation strategy.

Key facts

• STRC preferred stock fell from $100 target to low $80s.
• CEO Saylor claimed AI helped design the security, drawing mockery.
• Monthly adjustable dividend mechanism is being tested by price drop.
• Higher dividend costs could reduce Bitcoin buying capacity.
• No evidence yet of forced Bitcoin sales by Strategy.

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