Key facts
- Strategy's perpetual preferred stock (STRC) has fallen below its $100 par value.
- The decline in STRC's price has slowed Strategy's ability to raise funds for Bitcoin purchases.
- STRC's trading volume has significantly decreased.
- The company has increased STRC's dividend to 11.5% to attract investors.
- Strategy previously announced plans to sell billions in common and preferred stock.
Strategy's perpetual preferred stock, STRC, has fallen below its $100 par value, a development that could slow the company's ability to raise capital for Bitcoin purchases. The stock, launched in July 2025, was designed to trade around $100 to facilitate continuous fundraising through an at-the-market (ATM) process. STRC initially offered a 9% annualized dividend, which was raised over seven consecutive months to reach 11.5% in an effort to attract investors seeking stable returns and keep the stock above par.
However, STRC recently traded below its $100 par value, hitting a low of $99.06, with trading volume dropping to approximately 50% of its 30-day average. If the price remains below $100, the company may increase its dividend further to support the stock price. This situation impacts Strategy's ability to use its preferred stock as a continuous fundraising engine for acquiring Bitcoin, a strategy closely associated with Michael Saylor.
Previously, Strategy announced plans to sell up to $21 billion in common stock, $21 billion in STRC preferred stock, and $2.1 billion in STRK preferred stock. This initiative was followed by a significant Bitcoin purchase of 34,164 BTC, valued at approximately $2.54 billion, in April.