The decline has halted the above-par share sales that Strategy employs to finance bitcoin acquisitions, coinciding with the stock whose dividends compelled the company's initial BTC sale this month.
By Shaurya Malwa|Edited by Omkar GodboleUpdated Jun 18, 2026, 5:57 a.m. Published Jun 18, 2026, 5:49 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Strategy’s primary funding tool, the STRC preferred stock, has dropped to a record low of $89, undermining a key method the company uses to raise funds for bitcoin purchases.
- With STRC trading below its $100 par value, Strategy has suspended the issuance of new shares through its at-the-market program, which restricts its ability to increase bitcoin holdings.
- The decline in STRC follows Strategy's initial bitcoin sale to cover preferred dividends.
Strategy (MSTR) has seen its preferred stock, utilized for financing bitcoin acquisitions, fall to an unprecedented low, thereby constraining one of its funding pathways.
The Variable Rate Series A Perpetual Stretch Preferred Stock, referred to as STRC, closed at $89 on Wednesday, marking its lowest point since its inception in July 2025.
This represents an approximate 11% decline from the intended $100 value of the stock. Preferred stock is a category of equity that provides fixed dividends and has priority over common shares in terms of payouts. STRC offers a variable dividend, currently at an effective rate of 12.9%, which is adjusted monthly to maintain its price near $100.
Market participants monitor this discount closely due to the way Strategy leverages the stock.
When STRC is priced above $100, the company can issue new shares via an at-the-market program, selling directly into the market to fund bitcoin purchases. However, with the stock currently below par, Strategy has halted this program, limiting its capacity to continue accumulating bitcoin. STRC is usually the most actively traded of its preferred stocks.
This decline also affects a sensitive financial instrument. The dividends from STRC prompted Strategy to sell bitcoin for the first time since it began accumulating the asset in 2022. The company revealed on June 1 that it had sold 32 bitcoins for approximately $2.5 million in late May to cover STRC distributions, a decision that startled a market accustomed to Chairman Michael Saylor’s commitment to never sell.
Last week, Strategy announced that it had built a dedicated U.S. dollar reserve of $1.1 billion to meet preferred dividends and debt obligations while still acquiring 1,587 bitcoin through separate common stock sales.
Strategy currently holds around 846,842 bitcoin, representing about 4% of the total supply that will ever be produced, making it the largest corporate holder of bitcoin.
Although STRC has previously dipped below par, this typically occurs during periods of increased bitcoin volatility. Bitcoin has remained around $64,000 to $65,000 this week, while Strategy’s common stock, MSTR, fell approximately 5% on Wednesday to $116.52.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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