STRC Preferred Stock Plunges 11% Below Par Amid Bitcoin Weakness

Strategy's STRC preferred stock has plummeted to around $89, representing an 11% drop from its par value of $100. This decline has been building for weeks and is attributed in part to a weaker bitcoin price and growing scrutiny of Strategy's cash reserves relative to its dividend obligations.

The strain on the financing model, which relies on STRC trading near par, is evident as investors increasingly favor rival securities like Strive's SATA. This preferred stock offers a higher yield, daily dividend payments, and a debt-free structure, drawing capital away from STRC.

Strategy has maintained a constant 11.5% dividend rate for several months, balancing the cost of a higher payout against growing cash obligations. However, market pressure may be pushing for an increase in this rate to around 12.5%, which could restore demand and pull STRC back toward par.