Strategy's Dividend-Paying Crypto Stock Faces Significant Decline

Markets Strategy's dividend-paying crypto stock is experiencing a notable drop, nearing historic lows.

Concerns over dividend sustainability and competition from Strive's SATA impact Strategy's bitcoin-backed preferred stock.

By James Van Straten Jun 16, 2026, 9:54 p.m. 2 min read

• STRC closed at $91.79, marking its third-lowest close since its launch, and is trading nearly 8% under its $100 par value.
• Investors are increasingly drawn to Strive's SATA, which boasts a higher yield, daily dividend payments, and a debt-free structure.

As of Tuesday, Strategy's (MSTR) preferred stock, STRC, finished at $91.79, its third-lowest closing price since it began trading in July 2025, largely due to declining bitcoin prices and concerns about debt.

STRC's only lower closes occurred during two sessions later that month, with a low of $88.60. Initially, the stock debuted at around $90.

STRC was intended to trade close to its $100 par value; however, it has remained below that threshold for an extended period and hasn't reached $100 since May 15, the date it went ex-dividend.

Typically, STRC traded near its $100 par value before going ex-dividend, but after that date, it often dipped by approximately the dividend value before slowly recovering, which did not happen for STRC on June 15.

Several issues appear to be affecting STRC's ongoing decline.

Firstly, STRC has historically moved in correlation with bitcoin, which is currently under pressure, trading around $65,000—approximately 50% lower than its peak in October.

Secondly, there are worries regarding the sustainability of dividends. Strategy has about seven months of dividend payments left after utilizing part of its cash reserves to settle $1.5 billion in convertible debt. Before this repayment, the company had a cash position that could cover dividends for up to 24 months.

Meanwhile, investors have shown a preference for a competing product from another bitcoin treasury peer, Strive (ASST). Strive's bitcoin-backed preferred stock, SATA, continues to trade near $100 par value, offering a better annual yield of about 13%, compared to STRC's 11.5%.

SATA also provides daily dividend payments instead of bi-monthly ones, and Strive has no outstanding debt. Thus, SATA ranks higher in the capital structure and doesn't have obligations to convertible debt holders, making it more appealing for income-focused investors.

The disparity between the two securities has widened significantly, with STRC currently trading at about an $8.20 discount to SATA, the largest gap recorded, as SATA trades at $99.99.

Given STRC's current dividend rate and market price, its annualized yield is around 12.53%, calculated by dividing annual dividend payments by the current share price. The market seems to indicate that STRC's dividend rate may need to rise by approximately 100 basis points to attract demand and bring the stock closer to its intended $100 par value.

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In May, total exchange volumes decreased by 3.45% to $4.41T, marking the lowest level since September 2024. Conversely, RWA perpetual futures volumes surged by 10.4%, achieving a new all-time high.