Strategy’s Stretch preferred stock (STRC) closed at $89 on Wednesday, roughly 11% below its $100 par value and its lowest daily close on record since debuting in 2025.
The stock hit an intraday low of $88.50, marking one of the few times it has traded below its initial public offering price of $90.
What is STRC
STRC is a variable-rate perpetual preferred stock issued by Strategy to raise capital for bitcoin purchases.
It currently pays a 12.9% effective dividend rate, distributed semi-monthly in cash, and was designed to hold steady around $100 through monthly rate adjustments.
When STRC trades above par, Strategy issues new shares and uses the proceeds to buy bitcoin.
The company has paused that at-the-money program while the stock trades at a discount.
Bitcoin volatility weighs on price
Market watchers noted that STRC tends to dip during periods of bitcoin volatility.
Bitcoin has held around $65,000 in recent days heading into new Federal Reserve Chair Kevin Warsh’s first FOMC meeting, where the Fed voted to keep interest rates steady.
MSTR closed down about 5% at $116.52 on the same day.
Strategy’s first bitcoin sale since 2022
In late May, Strategy sold 32 BTC for roughly $2.5 million to fund STRC distributions, its first bitcoin liquidation since it began accumulating in 2022.
Analysts at Benchmark and TD Cowen pushed back on fears that these sales and broader market weakness could trigger a “death spiral” for the company.
STRC is senior to Strategy’s other preferred stocks Stride (STRD) and Strike (STRK) as well as common shares, but junior to Strife (STRF) and debt.
Michael Saylor had described Stretch’s launch as the company’s “iPhone moment.”
