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A preferred stock that Strategy (MSTR) uses to help fund its bitcoin buying has fallen to a record low, constricting one of the company's funding channels.
Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, closed at $89 on Wednesday, its lowest level since it launched in July 2025.
That is about 11% below the roughly $100 the stock is designed to hold. A preferred stock is a class of equity that pays a fixed dividend and ranks ahead of common shares in payout order. STRC pays a variable dividend, currently at an effective rate of 12.9%, adjusted monthly to keep its price near $100.
Traders keep track of this discount because of how Strategy uses the stock.
When STRC trades above its $100 par, the company issues new shares through an at-the-market program, selling stock straight into the market, and uses the cash to buy bitcoin. With the stock now below par, Strategy has paused that program, removing one of the levers it relies on to keep accumulating. STRC is typically the most actively traded of its preferred shares.
The slide also lands on a sensitive instrument. STRC's dividends prompted Strategy to sell bitcoin for the first time since it began accumulating bitcoin in 2022. The company disclosed on June 1 that it had sold 32 coins for about $2.5 million in late May to fund STRC distributions, a move that rattled a market used to Chairman Michael Saylor's pledge never to sell.
Last week, Strategy said it had grown a dedicated U.S. dollar reserve to $1.1 billion to cover preferred dividends and debt, while still buying 1,587 bitcoin through separate sales of its common stock.
Strategy holds about 846,842 bitcoin, roughly 4% of the supply that will ever exist, making it the largest corporate holder.
STRC has dipped below par before, however, usually during stretches of bitcoin volatility. Bitcoin has held around $64,000 to $65,000 this week, and Strategy's common stock, MSTR, fell about 5% on Wednesday to $116.52.
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