Strategy Inc. (NASDAQ:MSTRLeading Bitcoin treasury company, led by Michael Saylor Variable Rate Series A Perpetual Flexible Preferred Stock (ribbon code: STRC) closed at an all-time low of $89 on June 17, 2026. Shares briefly touched an intraday low near $88.50; This represents a roughly 11% discount to the $100 par value the security is structured to target.
Launched in mid-2025, STRC functions as a perpetual preferred equity instrument with a variable dividend rate.
It is designed to provide income to investors while directing excess capital towards additional Bitcoin purchases.
The adjustable payout mechanism provides flexibility to support management in case the share price deviates from par value.
Proceeds from previous issuances helped expand the scope of the Strategy Bitcoin With holdings of approximately 846,842 coins, representing approximately 4% of the total final supply, the company also maintains a dedicated US dollar reserve of approximately $1.1 billion reserved for preferred dividends and payment of debt obligations.
right now trade As the market demanded greater compensation for perceived risk, the effective yield for new buyers rose well above the initial base rate to approximately 12.9%.
The decline also temporarily halted Strategy’s issuance program for additional STRC shares, which had previously allowed the company to raise above-average funds specifically for the purchase of more Bitcoin.
Bitcoin skeptic Peter Schiff framed price weakness as evidence of a potential self-reinforcing “death spiral.”
He argues that continued below-average trading could pressure the company to increase its dividend in an attempt to reignite investor interest and return the price to $100.
However, higher payments will increase cash needs.
Meeting these obligations may then require selling more stock at a discount or leveraging debt. Bitcoin reserves, actions that could intensify selling pressure on both the Strategy’s equity and Bitcoin itself.
Schiff has previously suggested that the only clean exit from such a cycle would involve a complete suspension of dividends; He believes this will trigger an even sharper crash in STRC and lead to broader downside for the company and the cryptocurrency.
The strategy addressed these concerns by emphasizing liquidity management.
The firm recently sold 32 bitcoins in late May to cover dividend payments; This was the first such sale since it began accumulating in 2022.
Managers described meeting these obligations as a way to demonstrate commitment and improve the credit profile. Bitcoin-backed securities.
The company continues to add to its treasury through other channels, including the recent purchase of more than 1,500 Bitcoins financed through stock sales.
Episode highlights trade-offs Strategyinnovative capital structure.
While variable interest is preferred to stock It creates a new form of Bitcoin-related income product, while also bringing sensitivity to market sentiment, Bitcoin price movements and the need for ongoing service returns.
Supporters see the model as a creative evolution that expands participation in digital assets; Critics see structural weaknesses that could increase downward pressure during periods of volatility.
Bitcoin It traded in the mid-$60,000s amid recent turmoil, and Strategy’s shares also fell on the same day STRC hit its lowest level. Market participants will likely be watching very closely to see whether preferred stock stabilizes in the coming weeks or requires further adjustments to dividend mechanisms.
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