Exploring the events leading to STRC's drop below par value, from a bond buyback to a bear market in bitcoin.
By James Van Straten|Edited by Sheldon Reback Jun 20, 2026, 1:00 p.m. 4 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Strategy Executive Chairman Michael Saylor. (Nikhilesh De)SummaryShow- Strategy's preferred stock, STRC, which is intended to maintain a $100 price, fell to a low of $83 on Thursday.
- This decline was attributed to various factors, including a buyback of convertible notes at an 8% discount and Strive announcing daily dividends on its SATA security.
- The downturn was further influenced by dropping bitcoin prices, diminished liquidity, and a lack of investor confidence.
STRC, the preferred equity issued by the bitcoin treasury firm Strategy (MSTR), is set to retain a price of $100, its par value, but this has not always been the case.
On Thursday, the stock price plunged below $83, marking a 17% decrease from its target and the lowest level since its launch in July 2025. This security is designed to provide high yields with low volatility.
Maintaining the stock price near par is essential as it enables Strategy to effectively raise capital through at-the-market (ATM) offerings to cover the annualized 11.5% payout.
However, in recent weeks, a significant drop in bitcoin prices BTC$63,334.60, along with a series of management actions, drove STRC well below its intended trading range. Here’s a timeline of the events:
May 14: STRC closed at $100 ahead of its monthly ex-dividend date, while bitcoin was above $80,000. Everything seemed stable at this point. (Investors purchasing a stock on the ex-dividend date forfeit the payout, often leading to a price drop reflecting this loss.)
However, beneath the surface, the situation was complicated. Bitcoin had already fallen significantly from its October peak of $126,000, and STRC had only maintained its $100 price briefly around the ex-dividend date, not throughout the month.
Additionally, Strive Asset Management (ASST) chose that day to announce daily dividends for their competing security, SATA. This announcement added pressure on Strategy, which was seeking shareholder approval to change STRC from monthly to semi-monthly dividends.
STRC's proposed adjustment aimed to mitigate volatility around ex-dividend dates and help the stock trade closer to par over extended periods.
May 15: Strategy revealed a plan to repurchase $1.5 billion of its 2029 convertible notes at an 8% discount. At that time, Strategy had over $8 billion in convertible debt, while Strive had no outstanding convertible debt.
This buyback was partially financed by a cash reserve created at the end of 2025 to support dividend and debt obligations. The use of these funds for the transaction was not disclosed initially.
Bitcoin's price dropped to $78,000.
May 18: Strategy acquired 24,869 BTC as bitcoin prices fell to around $76,000.
May 26: The company confirmed that it had indeed utilized its cash reserve for the bond buyback, which decreased the fund to $871 million.
This buyback also reduced the reserve to approximately six months of STRC dividend coverage, whereas the company had previously indicated a desire to maintain around 24 months of coverage.
STRC traded at $99.33, with bitcoin around $77,000.
June 1: Strategy sold 32 BTC, marking its first bitcoin sale since 2022. This move seemed aimed at demonstrating its capability to liquidate assets if necessary to meet dividend obligations.
The sale represented just 0.0038% of the company’s holdings. Nonetheless, the common stock (MSTR) fell by 5.9%, with bitcoin dropping to as low as $70,500 before closing at $71,286. STRC ended the day at $98.07.
June 5: Bitcoin fell below $60,000 for the first time since October 2024, closing near $61,000, based on CoinDesk data. STRC dropped to a low of $90, finishing at $93.40.
June 8: Shareholders approved the plan for bi-monthly STRC dividends. Strategy purchased 1,550 BTC and reported that its dollar reserve had increased to $1 billion.
June 15: Another acquisition of 1,587 BTC was made, with the dollar reserve now at $1.1 billion.
June 18: STRC dipped below $83 during the day, closing at $88.59 as the U.S. approached a holiday weekend with no stock trading on Friday. Bitcoin saw a minor rebound before falling 2.4% to $62,880. Strive CEO Matt Coles, whose SATA also declined, attributed the drop to a leverage-driven liquidation rather than indicating poor credit fundamentals.
Currently, the company holds 846,842 BTC, purchased at an average cost of $75,656 per bitcoin. With bitcoin priced around $62,500, Strategy faces an unrealized loss of approximately $11.14 billion.
Moreover, its recent capital raises have been perceived as dilutive, leading to significant pushback from the community. The common stock is now trading around $112, down nearly 80% from its all-time high in November 2024.
The pressing concern for Strategy is that these developments unfolded during a bear market for bitcoin. As bitcoin continued its decline, investor confidence waned not just in the cryptocurrency but also in the financial instruments and capital structures associated with it.
The crucial question for investors remains whether STRC can bounce back and return to its par value.
Read more: Here is why Strategy's dividend-paying crypto stock is crashing to near-historic lows
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
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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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