Strategy's preferred stock, STRC, has dropped to $91.79, raising concerns over dividend sustainability amid competition from Strive's SATA.
Strategy's preferred stock, STRC, has hit a significant decline, closing at $91.79, its third-lowest price since its launch in July 2025, and trading nearly 8% below its $100 par value.
Market Pressures and Competition Challenge STRC's Stability
As of June 16, 2026, STRC's performance is largely attributed to falling bitcoin prices and investor concerns regarding the sustainability of its dividends. The stock has not traded above its par value since May 15, when it went ex-dividend.
Historically, STRC traded near $100 before going ex-dividend but has struggled to maintain that level, dipping after each dividend date. Currently, bitcoin is trading at around $65,000, about 50% lower than its peak in October, adding to STRC's woes.
Recent actions by Strategy have raised questions about its dividend sustainability. The company has approximately seven months of dividend payments left after using part of its cash reserves to pay down $1.5 billion in convertible debt, which previously allowed for a more robust dividend coverage of up to 24 months.
In contrast, investors are gravitating towards a competing product from Strive, known as SATA, which offers a more attractive yield of around 13% with daily dividend payments and no outstanding debt. This has led to a widening gap between the two stocks, with STRC trading at an $8.20 discount to SATA, which is currently priced at $99.99.
Given STRC's yield of approximately 12.53%, analysts suggest that an increase of about 100 basis points in its dividend rate may be necessary to boost demand and help the stock approach its intended par value.
