NEW YORK, June 18, 2026, 12:59 PM (EDT)
- Strategy’s Stretch preferred stock last traded at $86.54, off a session low of $82.61 and still well under the $100 it’s meant to track.
- The slide is important. STRC is a key way for Strategy to raise cash for bitcoin purchases beyond just selling common stock.
- The company sold $209 million in common stock and picked up 1,587 bitcoin in the week through June 14, according to its latest filing. There were no STRC sales reported.
Strategy Inc’s preferred shares dropped again Thursday, adding pressure to a funding engine that’s pushed the one-time software firm to the top as the world’s largest corporate bitcoin holder.
STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, was last seen at $86.54 midday in New York, off $2.46. Shares fell earlier to $82.61. Common stock traded at $111.15. Bitcoin was weaker, around $62,638.
STRC was designed to stick close to a $100 stated value. The company can tweak its dividend to manage demand. But the drop below $90 is a different problem. Now investors are asking if Strategy can keep getting cheap funding to add bitcoin, or if the cost will start to squeeze common shareholders even more,
Strategy is paying an 11.50% annual dividend on STRC, now split into semi-monthly cash payouts. The rate resets monthly to keep STRC trading near $100. On its STRC page, the firm puts notional at about $10.49 billion and notes that the cash dividends aren’t guaranteed. The preferreds are not backed by the company’s bitcoin holdings.
STRC shareholders this month voted to switch dividend record and payment dates from monthly to semi-monthly. CEO Phong Le said the goal of twice-monthly payouts was to “stabilize price, dampen cyclicality, drive liquidity, and grow demand for STRC.” Shares have not responded. Strategy
STRC’s dividend rate stays the same after a June 15 filing. The filing also did not bump up Strategy’s total dividend obligations. STRC will pay a transitional semi-monthly dividend of $0.479166667 a share, matching the old 11.50% annual rate, according to the same document.
Strategy disclosed in its latest weekly filing that it sold 1.73 million common shares for $209 million using an at-the-market program. Under this method, shares move to market buyers over time at the going price. The company didn’t sell any STRC. It bought 1,587 bitcoin for $100 million, bringing total bitcoin held to 846,842 as of June 14.
That’s the spot investors are watching. Investors Business Daily said Strategy has close to $230 million in interest and dividend payments coming up before the end of the month and could need to issue more common shares. STRC’s dividend rate sits at 11.50% now but could jump to at least 11.75% if the weakness keeps up.
Strategy’s February framework says management is likely to recommend raising the dividend rate by at least 50 basis points for the next period if STRC’s average trading price this month comes in under $95. A basis point equals one-hundredth of a percentage point.
FT Alphaville said Thursday that STRC is not a typical “death spiral” convertible, with no direct conversion into common stock. But a drop in STRC shares can still lead Strategy to pay out more on its preferreds, issue more equity or sell bitcoin, the outlet wrote. Financial Times
That “last option” has played out. Strategy disclosed in a June 1 filing it unloaded 32 bitcoin late May for $2.5 million, saying the money will go to preferred-stock distributions. The company had $900 million in U.S. dollar reserves at May’s close and reported $1.1 billion as of June 14.
The backdrop is different now. CoinDesk said this week that some investors are picking Strive’s SATA preferred security instead, trading near $100. The security’s yield is higher and pays a daily dividend. Strive also has no debt.
Bearish bets aren’t a lock. Bitcoin could bounce, buyers could come back for yield plays, or a convincing reserve raise could help STRC get back near par. But if bitcoin stays soft and STRC keeps trading under $100, Strategy faces a tough choice: offer richer terms for preferreds, dump more common shares, or tap into its main bitcoin stash.
