Strategy’s (MSTR) preferred stock, STRC, has faced significant challenges in the market, closing at $91.79 on Tuesday, marking its third-lowest closing value since its inception in July 2025. This decline is primarily attributed to falling bitcoin prices and growing concerns regarding the company’s debt levels. STRC previously experienced lower closes earlier in July, with a notable drop to $88.60.
Initially priced around $90 at launch, STRC has struggled to maintain its value, trading well below its intended $100 par value for an extended period. The last time it reached that level was on May 15, which also marked the last ex-dividend date. Historically, the stock has tended to hover near its par value leading up to ex-dividend dates, as new buyers seek access to upcoming dividends. However, this trend was disrupted in June when the stock failed to approach par following its ex-dividend date.
Several factors have contributed to STRC’s ongoing decline in value. A significant driver is its correlation with bitcoin prices. As bitcoin remains under pressure—currently trading around $65,000 and approximately 50% below its record high from October—investor sentiment around STRC has also weakened. The combination of these market dynamics and the company’s debt concerns has cast uncertainty on STRC’s performance, leading to cautious trading behavior among investors.
