Strategy's perpetual preferred stock STRC closed at $89 on 18일, marking the lowest level since its July 2025 Nasdaq listing. The decline reflects weakened investor sentiment amid Bitcoin price weakness and concerns over dividend sustainability. Strategy, the world's largest corporate Bitcoin holder, issued STRC as a Variable Rate Series A Perpetual Preferred Stock to fund additional Bitcoin acquisitions while offering high dividend yields and targeting price stability around $100.
STRC Hits $88.5 Intraday Low, Closes at $89
STRC dropped to an intraday low of $88.5 during trading on 18일 before closing at $89, according to Yahoo Finance. This represents the lowest 52-week price and the lowest closing price since the security's Nasdaq listing in July 2025. The preferred stock is designed to maintain a price around $100 while providing investors with high dividend returns.
Bitcoin Weakness Pressures Preferred Stock Performance
Market participants attribute STRC's decline to Bitcoin's price weakness. Bitcoin fell to $64,000 amid geopolitical tensions from U.S.-Iran conflicts and signals from the Federal Reserve indicating a potential interest rate increase trajectory within the year. Strategy holds the largest corporate Bitcoin position globally, creating direct exposure between STRC performance and Bitcoin price movements.
Strategy Sold 32 Bitcoin in May for Dividend Payments
Investor concerns intensified after Strategy disclosed selling 32 Bitcoin for $2.5 million in May to fund STRC dividend payments. The transaction raised questions about the sustainability of the dividend structure. Strategy had previously relied on its At-The-Market (ATM) program to issue new STRC shares above $100 and use proceeds for Bitcoin purchases, but current trading below par value limits this funding mechanism.
ATM Program Constrained Below $100 Par Value
Strategy's ATM program allows the company to issue new STRC shares when the stock trades above $100, using proceeds to acquire additional Bitcoin. With STRC currently trading below par value at $89, the company's ability to utilize this program for Bitcoin accumulation is restricted. The preferred stock structure links funding capacity directly to share price performance above the $100 threshold.
FAQ
What price did Strategy's STRC preferred stock close at on 18일?
STRC closed at $89 on 18일, after reaching an intraday low of $88.5. This represents the lowest closing price since the security's Nasdaq listing in July 2025 and the lowest level in the past 52 weeks.
Why did Strategy sell Bitcoin in May?
Strategy sold 32 Bitcoin for $2.5 million in May to fund dividend payments for STRC preferred stockholders. The transaction raised concerns among investors about the sustainability of the dividend structure as the company used Bitcoin holdings to meet payment obligations.
How does Bitcoin's price affect STRC performance?
Bitcoin's decline to $64,000 amid geopolitical tensions and Federal Reserve rate signals directly pressured STRC, as Strategy is the world's largest corporate Bitcoin holder. The preferred stock's performance reflects investor sentiment toward Bitcoin exposure and the company's ability to fund dividends while accumulating additional Bitcoin.
