MicroStrategy’s STRC Hits Record Low as Monthly Slide Tops 10%

Source Beincrypto

MicroStrategy’s STRC preferred stock dropped to a record low on Thursday, closing well under its $100 par value and weakening a key channel the company uses to raise cash for Bitcoin (BTC) purchases.

The slide has renewed concern that Strategy may sell more Bitcoin to fund the stock’s dividend. The firm holds about 846,842 BTC.

Strategy’s Perpetual Share Drops to Record Low 

According to market data, STRC closed at $88.59 on Thursday, marking a new all-time low. The stock also touched an intraday low of $82.5 during the trading session. Over the past month, it has fallen more than 10%.

MicroStrategy Perpetual Share Performance. Source: TradingViewMicroStrategy Perpetual Share Performance. Source: TradingView

The recent pullback coincided with weakness in Bitcoin’s price and a more hawkish stance from the Federal Reserve. 9 of the 18 FOMC participants now expect at least one rate hike in 2026.

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What STRC’s Decline Means for MicroStrategy’s Bitcoin

The slide carries two implications for the firm’s Bitcoin strategy. Both trace back to how STRC funds the company’s purchases.

STRC is engineered to trade near $100. It pays an 11.5% annual dividend rate for June, unchanged for a fourth straight month.

The first impact hits Strategy’s funding channel. The design only works while STRC trades near or above $100. At this point, Michael Saylor’s firm issues new shares and uses the proceeds to buy Bitcoin.

With STRC roughly $11 below par, that mechanism strains. Selling shares at well under $100 per share raises less cash per share and narrows a core funding channel.

The second impact raises the prospect of Bitcoin sales. Bull Theory, an X commentator, argued that Strategy would need to lift the dividend rate to restore the peg.

A higher rate, however, means a larger annual cash obligation. Strategy currently funds that obligation by selling MSTR shares.

The constraint is MSTR’s net asset value premium, which has compressed toward 1x. That leaves little room to dilute further, Bull Theory said, a squeeze that could push Strategy toward selling Bitcoin.

“When Strategy sold just $2 million worth of Bitcoin last time, the price dropped 20%. If Strategy is forced into becoming a consistent seller, the impact on Bitcoin would be significant,” the analyst wrote.

MicroStrategy CEO Phong Le has previously said that the firm could sell BTC when that option is better than issuing equity to pay Stretch preferred stock dividends.

The Bull and Bear Debate

The selloff has split commentators. Peter Schiff, a longtime Bitcoin critic, framed the decline as a structural failure.

Others read the drop as technical rather than fundamental. Jesse Myers, Head of Bitcoin Strategy at The Smarter Web Company, attributed it to a leverage-driven liquidation cascade. He expects Strategy to raise the dividend on June 30, possibly to 11.75% or 12%.

“The market is freaked out that this depeg is like Terra/Luna… but this is not an asset like that,” he said. “Opportunistic hedge funds will recognize that this is a firesale and the fundamentals are unchanged for STRC and step in as buyers.”

The next signal comes June 30, when STRC shifts to twice-monthly payments. Whether that cadence and a possible rate increase can pull the stock back toward par will shape Strategy’s next funding moves.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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