Strategy's STRC Preferred Stock Plunges to Near-Historic Lows Amid Bitcoin Headwinds
Strategy's (MSTR) bitcoin-backed preferred stock, STRC, closed at $91.79 on Tuesday, its third-lowest close since launch in July 2025, and nearly 8% below its $100 par value. Persistent price weakness is attributed to lower bitcoin prices, concerns over dividend coverage, and stronger competition from Strive's SATA. Strategy recently used cash reserves to repay $1.5 billion of convertible debt, reducing dividend coverage from 24 months to about seven months. Meanwhile, Strive's SATA offers a higher 13% yield, daily dividends, and a debt-free structure, trading near par at $99.99. The gap between STRC and SATA has widened to a record $8.20 discount. The market may be signaling that STRC's dividend rate needs to increase by about 100 basis points to restore demand and approach its $100 par value.
Key facts
- STRC closed at $91.79, third-lowest since launch, 8% below $100 par value.
- Dividend coverage reduced to ~7 months after $1.5B debt repayment.
- Strive's SATA offers 13% yield, daily dividends, trading near par at $99.99.
- STRC's discount to SATA hit a record $8.20.
- Market signals STRC needs ~100 bps dividend increase to restore par value.