Strategy's STRC falls to $90 as Bitcoin slides under $63,000

Strategy's STRC preferred stock fell to $90 this week as Bitcoin slid under $63,000, then recovered toward its $100 par value, repeating a pattern that has shadowed every major Bitcoin drawdown this year.

"Bitcoin is stalling beneath $65,000, a level that flipped from support to resistance after February's crash," Michael van de Poppe, an analyst, said. A clean break higher could open a run toward $72,000 to $74,000, easing pressure on the preferred, he said.

The 11.5 percent annual dividend on the Variable Rate Series A Perpetual Stretch Preferred Stock has been held unchanged for a fourth straight month. STRC fell below $95 on June 3 for the first time in three months, closing at $94.65 as Bitcoin dropped to $62,000 and liquidations topped $1.6 billion across major exchanges. By June 8 the preferred traded around $93 after an intraday low near $90.

The discount matters because Strategy issues fresh STRC mainly when shares sit at or above par, and it has paused those sales before when the gap widened. The preferred has funded roughly 77,000 Bitcoin in purchases this year, more than spot ETFs bought on net across the entire US market. Shareholders approved a shift to semi-monthly dividends days before the latest drawdown, a change the company said should steady the share price and tighten trading around par.

Strategy held 845,256 Bitcoin as of June 9, against a roughly $1 billion cash reserve set aside for dividends and debt service. With that balance sheet, STRC moves less on its own mechanics than on Bitcoin price sentiment, a link visible each time a BTC sale pressures the shares. Economist Peter Schiff has argued the discount reflects the model itself, not only the price of Bitcoin, suggesting the preferred could face structural headwinds even if the token recovers.

The next test for STRC will come if Bitcoin fails to reclaim $65,000 in the coming sessions. A sustained break below that level could push the preferred back toward $90, while a rally above $65,000 would likely lift it toward par and reopen the window for Strategy to issue additional shares to fund further Bitcoin purchases.

This article is for informational purposes only and does not constitute investment advice.