Strategy STRC Stock Hits Record Low, Raising Concerns Over BTC Buying

Key facts

• MicroStrategy's preferred stock, STRC, hit a record low.
• STRC closed at $89.
• STRC is trading below its $100 par value.
• STRC's closing price represented an 11% discount to par.
• MicroStrategy has paused its at-the-market (ATM) program for issuing new shares.
• The ATM program was used to fund Bitcoin purchases.
• A QCP report suggests MicroStrategy may sell more Bitcoin.
• Potential Bitcoin sales could fund dividend payments.
• MicroStrategy recently sold Bitcoin and raised capital through stock sales.
• The company's liquidity runway remains limited.

MicroStrategy's preferred stock, STRC, has reached a record low, closing at $89 and trading below its $100 par value. This represents an 11% discount to par and has led to concerns regarding the company's capacity to finance its Bitcoin acquisition strategy. In response to the declining stock price and its implications, MicroStrategy has paused its at-the-market (ATM) program for issuing new shares. This ATM program was previously utilized to raise capital for purchasing Bitcoin.