MicroStrategy’s STRC Drops Below $100, Bitcoin Faces Pullback

MicroStrategy’s preferred stock Stretch (STRC) has traded below its $100 par value since April 15, a change that may limit the company’s ability to raise cash for additional Bitcoin purchases and raise the risk of a price decline for Bitcoin to the $67,000–$69,000 range.

The company disclosed on Monday that it bought 34,164 BTC between April 13 and April 19 for about $2.54 billion. MicroStrategy funded most of that purchase through at-the-market sales of STRC that generated roughly $2.17 billion, and it raised about $366 million from sales of its Class A common stock (MSTR).

STRC is structured to let MicroStrategy issue shares and raise cash for Bitcoin acquisitions when the preferred shares trade at or above $100. With STRC below par, the preferred-stock sales channel may be constrained this week and the company may pause further purchases until fundraising conditions improve.

Historical episodes when STRC traded under $100 have coincided with pauses in MicroStrategy’s Bitcoin buying and with declines in Bitcoin’s price. Market data show average Bitcoin declines of about 30% in past instances when STRC traded below par; measured from current levels near $75,800, a 30% drop would place Bitcoin near $53,000.

Bitcoin’s price action shows a flag-style consolidation pattern, with the price drifting toward the pattern’s lower boundary. Short-term technical measures-the 20-day and 50-day exponential moving averages-are acting as dynamic support. A break below the flag’s lower trend line could open a path toward the $67,000–$69,000 zone. Near-term resistance sits around $78,000, and the 200-day exponential moving average is near $82,750.

Risk sentiment in broader markets has weakened this week as traders weighed uncertainty over a U.S.–Iran truce. Former President Donald Trump described an extension of the pause as “highly unlikely” if no agreement is in place before it expires on Wednesday. Signs of renewed or extended conflict in the Middle East may reduce investor demand for speculative assets, including Bitcoin.

MicroStrategy’s recent $2.54 billion purchase represented roughly 2.5 months of new Bitcoin supply. With STRC below its $100 par value, the company’s ability to continue funding Bitcoin purchases through preferred-stock sales may be reduced until STRC trading returns to par or alternative funding is secured.