Strategy's preferred stock STRC plunges 17% below par value as bitcoin slide and debt moves spook investors

STRC, Strategy's dividend-paying preferred stock designed to hold at $100, dropped to $83 as falling bitcoin prices, a bond buyback using cash reserves, and competition from Strive's SATA eroded investor confidence.

• STRC fell 17% below its $100 par value, hitting $83, its lowest since launch in July 2025.
• Strategy used its cash reserve to buy back $1.5B in convertible notes at a discount, reducing the dividend coverage buffer.
• Rival Strive began paying daily dividends on its competing SATA security, adding competitive pressure.
• Bitcoin's decline from $126K to $63K has squeezed Strategy's capital-raising ability and miner profitability.
• The security is critical for Strategy to fund its 11.5% annual dividend through ATM offerings.

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