Overview
- STRC closed around $89 with intraday prints near $82.50 in mid‑June, marking an all‑time low for the variable‑rate perpetual preferred and putting it well below its $100 stated amount.
- Because STRC now trades below par, Strategy has paused above‑par at‑the‑market (ATM) issuance, stopping a primary channel the company used to raise cash to buy bitcoin.
- Strategy disclosed it sold 32 BTC in late May for about $2.5 million to fund STRC dividend distributions and said it had built a roughly $1.1 billion dollar reserve while holding about 846,842 BTC in its treasury.
- Market reactions have been swift: MSTR common stock fell about 5–6%, options flows show heavier put positioning and negative gamma, and reported insider sales have heightened investor concern about funding and governance.
- Analysts say Strategy now faces painful choices—raise the dividend, change payment mechanics, sell bitcoin or issue equity—with each option increasing cash costs, dilution, or market pressure and inviting competition from rival products like Strive’s SATA.