Key facts
- Strategy's STRC preferred stock closed at $89 on Wednesday.
- The closing price represents an 11% decline from par value.
- This is the lowest non-adjusted daily close on record for STRC.
- The STRC preferred stock was designed to offer a high dividend and stable price.
- The stock's decline occurs amid bitcoin volatility.
- Strategy has paused its program to buy bitcoin with newly issued shares.
Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, known by the ticker STRC, concluded trading on Wednesday at $89 per share. This closing price represents an 11% decrease from its par value and marks the lowest non-adjusted daily closing price on record for the stock. The STRC preferred stock was initially designed with the objective of offering investors a high dividend yield alongside price stability. However, its recent performance has diverged significantly from these goals. The stock's decline below par is occurring in the context of considerable volatility in the price of bitcoin. Furthermore, Strategy has paused its program that involved acquiring bitcoin by issuing new shares. This pause in their bitcoin acquisition strategy, coupled with broader market conditions influenced by bitcoin's price swings, appears to be impacting the perceived stability and value of the STRC preferred stock.